New Delhi, Nov. 24: The government is yet to prepare the document inviting tenders from bidders for the auction of third-generation (3G) spectrum, scheduled to start next month.

The document is to contain the auction guidelines and details of the 3G licence policy, based on which interested parties will make their bids.

Ideally, the document should have been ready at least three-four months ahead of the auction.

According to the current schedule of the department of telecommunications (DoT), operators will be invited to place their tender offers on December 15, and the technical qualification round will be completed by December-end.

“Even if the DoT completes its bid document by the end of November and sends it to the potential bidders, it will give investors hardly any time to study the document, ask questions and seek written responses, all of which are pre-conditions to successful bids,” said an official from a leading telecom firm.

The DoT also needs to arrange for security screening of foreign telecom firms bidding for 3G spectrum.

during the technical qualification stage to avoid problems later.

Foreign telecom operators are not required to tie up with a domestic partner and seek clearance from the Foreign Investment Promotion Board (FIPB) to participate in the upcoming 3G auctions. However, a successful foreign company will need an Indian partner and the FIPB’s clearance for network rollout.

Industry analysts also said the global liquidity crisis along with the time crunch that potential investors face to plan their offer amount may deter telecom firms from placing high bids.

The DoT is keen to raise Rs 40,000 crore by auctioning the radiowaves required to launch 3G services, which will allows mobile phone users to surf the Internet or download content, including music and video, at a faster pace.

The government was expecting aggressive bidding from foreign players as they were allowed to participate in the bidding as independent entities.

However, disparity over spectrum usage fees that telecom operators need to pay for rolling out 3G services may prompt many mobile service providers to rethink their investment strategy.