26.2.10

3G auction snippets


The government on Thursday invited applications from mobile operators for participating in the 3G auctions and announced that three private players will be allowed to offer services in most of the circles. However, in five states, including Punjab and Jammu and Kashmir, the number will be four. According to the Notice Inviting Applications (NIA), all successful bidders would be allowed to offer 3G services on commercial basis only from September 1. The document further said that the last date for submission of applications is March 19. The mock auction will take place on April 5 and 6, which will be followed by the actual auction on April 9. The auction for BWA spectrum, which will be used to offer broadband services, will start after two days from the day of close of the 3G auction. The document said two players will be allowed to offer broadband services in 22 circles across the country. Chalking out the modes of payment, DoT said the successful bidders for both the 3G and BWA spectrum will have to make the payment within 10 calendar days of the close of the relevant auction. The government has set the base price for 3G spectrum in metros and Class A cities at Rs 320 crore and for Class B cities at Rs 120 crore, while for Class C cities it is Rs 30 crore. Whereas for the BWA spectrum, a base price of Rs 160 crore has been set for the metros. For the rest of the circles, it is ranging between Rs 15-60 crore. The document also made it clear that not more than one block of 3G spectrum and one block of BWA spectrum shall be allocated to any single bidder in a service area.Clearing the air over participation of foreign players, DoT said that interested foreign entities are allowed to participate in the auctions directly and obtain a licence, either through application for a new licence or through acquisition of an existing licensee within the mergers and acquisitions guidelines. About the charges and tenure, the document said the charge for 3G spectrum would be payable on total adjusted gross revenue of 2G and 3G services taken together and the right to use the radiowaves will be valid for 20 years.

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