Govt set to reap bumper revenue from 3G auction

Well, the bonanza that the Government would get from the auction of third-generation (3G) spectrum keeps climbing. What's more, at Thursday's close, the Centre is expected to get Rs380bn as against projection of Rs350bn from the combined 3G-BWA auction. Bids for one set of pan-India 3G mobile licences reached Rs93.3bn, or 167% above the base price, on the 17th day of the auction, government data showed. The base price for one set of pan-India 3G licences had been set at Rs35bn. As per the details given by the Department of Telecommunications (DoT), more than 100 Clock Rounds were completed as of Thursday. The auction started on April 9 and is still underway. Auction for BWA will start after two days of the close of 3G auction.
"The revenue from 3G auction alone may cross Rs400bn. Revenues from 3G and Broadband Wireless Access (BWA) spectrum put together may touch Rs500-550bn," Telecom Minister A Raja was quoted as saying earlier this week. Mumbai and Delhi continued to be among the most sought-after circles with highest bids of over Rs14bn each.
Out of a total of 22 circles for the 3G spectrum, 17 have three slots, while in rest of the five circles, four blocks of spectrum are available. India's fiscal deficit may come down to 5.2% of GDP from the estimated 5.5% of GDP. The Government has pegged the fiscal deficit at Rs3.81 lakh crores. He also said on Thursday that the 3G auction will be completed in a day or two. "The 3G auction is being held successfully....it will be completed in one or two days," he said during Question Hour in the parliament. The e-auction began on April 9 and will continue till such time that demand equals supply, Raja said. The successful bidders would be allotted air waves in September after the spectrum is vacated by the defence forces.