We blogged recently on how the 3G auction was relentlessly getting delayed due to the conflict on the reserve price between the DoT and Finance Ministry. Now in a bid to get the auction process for 3G up and running DoT has proposed an increase in the reserve price. But this increase isnt upto the Finance Ministries Rs 4,040 crore figure but its a few hundred crores lesser than than upto 3540 crores which is still about 70% increase over the earlier figure of Rs 2,020 crore.
While the Finance ministry had suggested that the price across telecom circles be doubled DoT has come to this 3000 odd crore figure by doubling the reserve price for metro regions from Rs 160 crore to Rs 320 crore and category A circles, including Gujarat, Maharashtra and Karnataka. While for category B regions, DoT has proposed to increase the fee by one and a half times. While the price in the category C circles such as Assam, Bihar and North East has been retained at 40 crores
One may wonder why is the Finance Ministry so interested? Well Its money that makes the world go round ain’t it? The finance ministry wants to make atleast Rs 30,000 crore from auctioning both 3G and broadband wireless access spectrum even if it means that the players would keep the bid price low
Even the base price for broadband wireless access spectrum for WiMax is proposed to be increased from Rs 1,020 crore to Rs 1,725 crore while Finance Ministry had suggested this to be increased to Rs 2,020 crore.
Though the price has increased there isnt any increase in the number of slots to be auctioned. A total of 5 operators including one slot reserved for BSNL or MTNL would be the maximum number.
when is the 3G auction likely and whick companies are the frontrunners for it?