India’s 3G auction process to begin next week

The Indian government plans to commence its long-awaited and oft-delayed 3G auction process within the next week, the telecoms minister has confirmed. Notices inviting applications will be issued shortly, with an estimated deadline 40-45 days later, meaning the auction will now take place in the 2010 fiscal year starting April.

The auction had previously been postponed due to internal disputes over the pricing and availability of wireless spectrum. The government hopes the expected INR 350 billion (US$7.6 billion) in revenues from the 3G auction will help stem its fiscal deficit, which has reached a 16-year high.

Analysts estimate individual operators could outlay between US$1-1.5 billion for India-wide spectrum, while the actual 3G network rollout could cost billions more. The country’s top three operators – Bharti Airtel, Reliance Communications and Vodafone Essar, have all indicated their appetite for a slice of the 3G pie, while Telenor’s Uninor has also showed interest in 3G licences for specific circles.

Additionally, the minister added that the introduction of mobile number portability has been pushed back a further two months until the end of May.