Pan-India 3G spectrum reaches US$1.36 billion as auction continues

After eight days and 46 rounds of bidding in India’s 3G auction, the price for a licence to provide 3G services nationwide reached INR 60.67 billion (US$1.36 billion). The Department of Telecommunications (DoT) expects the auction to run for up to two weeks. Taking into account all bids received so far, DoT is guaranteed to receive at least INR 242.68 billion from 3G proceeds, with the broadband wireless access (BWA) auction still yet to come.

Delhi has returned to the centre stage in bidding for individual circles on April 19 , attracting a top bid of INR 6.91 billion, followed by Mumbai with INR 6.36 billion and Tamil Nadu with INR 6.06 billion. Gujarat, which made headlines last week for topping the bids on day four ahead of the metro areas, attained a bid price yesterday of INR 5.49 billion.

Upon conclusion of the auction operators will be able to go live with 3G services beginning September 1. State-owned operators Mahanagar Telephone Nigam Ltd (MTNL) and Bharat Sanchar Nigam Ltd (BSNL) have already received their licences and launched services, however, will be required to pay licence fees that match the price of auction valuations.