3G auction: Govt set to get Rs 24K cr; bid price up 73 per cent | business | Hindustan Times
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3G auction: Govt set to get Rs 24K cr; bid price up 73 per cent

Ensuring a minimum of Rs 24,620 crore to the government's kitty, the price for all-India 3G spectrum rose to Rs 6,068 crore on Day 8 of the auction and the bidding is still going strong.

business Updated: Apr 19, 2010 22:53 IST

Ensuring a minimum of Rs 24,620 crore to the government's kitty, the price for all-India 3G spectrum rose to Rs 6,068 crore on Day 8 of the auction and the bidding is still going strong.

The Delhi circle continued to be the most in demand with the bid price going up to Rs 691.20 crore against the reserve price of Rs 320 crore.

The government has set a target of generating up to Rs 35,000 crore from the sale of spectrum for 3G telephony and broadband wireless access (BWA). The auction for BWA will start two days after that of 3G.

The base price for pan-Indian 3G licence was fixed at Rs 3,500 crore.

Earlier during the day, Telecom Minister A Raja exuded confidence that the government's revenues may exceed the target of Rs 35,000 crore.

According to senior DoT officials, the activity level is still 80 per cent, meaning that the operators are still concentrating only on metros and A-category circles and once they start bidding for the remaining circles, the price is likely to go up further.

Asked how many days more the auction can go on, they declined a guess but said it is still going very strong.

The government is auctioning the 3G spectrum simultaneously in all the 22 service areas.

Mumbai witnessed the second highest bid of Rs 635.38 crore, followed by Tamil Nadu with price crossing Rs 606 crore, according to information posted at DoT's website.

As many as 11 circles, mostly in B and C categories, are witnessing negative demand. This means there are no takers of spectrum as of now vis-a-vis availability of number of blocks.

The officials said that the picture would change once the operators, especially those are participating for pan-India spectrum, start showing interest in these circles.

According to DoT there is negative demand for Punjab, Haryana, Rajasthan and Jammu and Kashmir among others.

Today the DoT completed another six rounds totalling 46 at the end of eighth day of auction.