3G auction: most states to have 3 players each

Telecom service providers will fight for three slots of 3G spectrum in all but five states — Punjab, West Bengal, Bihar, Himachal Pradesh and Jammu and Kashmir (J&K).

Telecom service providers will fight for three slots of 3G spectrum in all but five states — Punjab, West Bengal, Bihar, Himachal Pradesh and Jammu and Kashmir (J&K).

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The government on Thursday initiated the much-awaited process of auctioning 3G spectrum by issuing the notice inviting application (NIA). Four slots of spectrum are offered for auction in these five states. The auction will take place on April 9. The successful bidders would be allowed to offer 3G services on commercial basis from September 1 this year.

NIA allows foreign firms to participate in the bidding. However, they need to have an Indian partner with a minimum of 26 per cent equity.

The successful bidders that are not telecom service providers will be required to acquire either a universal access service licence or Internet service provider’s licence.

The government has fixed

Rs 3,500 crore as reserve price for 3G spectrum. For metros and Class A cities reserve price is Rs 320 crore. For Class B cities it is Rs 120 crore.