Friday, May 7, 2010

Govt to earn Rs 50,000 cr from 3G

The auction of third generation (3G) spectrum is expected to close in one-two days, with the government likely to rake in Rs 50,000 crore from it.

The end of the 3G auction that started on April 9 would set the clock ticking for the auction of broadband wireless access (BWA) spectrum. It would start after a gap of two days and is likely to generate a revenue of Rs 10,000-15,000 crore. The government is expected to earn an estimated Rs 60,000-65,000 crore from both 3G and BWA. Its budgeted target was Rs 35,000 crore.

The 23rd day of 3G auction saw bids across India reaching Rs 11,327.44 crore, up 223.64 per cent from a base price of Rs 3,500 crore. The total revenue today reached Rs 45,500 crore.

The highest bid price in Mumbai reached Rs 1,986.69 crore, over six times the base price of Rs 320 crore. Delhi's highest bid reached Rs 1,920.02 crore, a six-times increase from a base of Rs 320 crore. Both Mumbai and Delhi circles have three slots each available for auction. On the 23rd day, both Delhi and Mumbai had five bidders each.

Mumbai and Delhi were followed by Karnataka with the highest bid of Rs 1,072.51 crore. Its base price was Rs 320 crore. It had five bidders with three slots available for auction.

A total of 132 rounds were completed till today. The activity requirement for bidders has been set to 100 per cent from this round.

There are three slots for 3G auction in 17 circles, while in rest of the five circles four slots are available for 3G auction. The auction would continue till the available number of slots is equal to number of bidders in all 22 circles simultaneously.

Six telecom service providers — Bharti Airtel Vodafone Essar, Reliance Communications, Idea Cellular,Tata Teleservices and Aircel — are vying for 3G spectrum in all the 22 circles.

 

Via : BS

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