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New Delhi, March 18: The auction of 3G spectrum today gathered momentum with top telecom players Bharti Airtel, Vodafone Essar and Reliance Communications (R-Com) putting in their applications for all the 22 telecom circles.
The last date for applying is tomorrow.
With the market leaders deciding to participate, the government is looking forward to some aggressive bidding in the April 9 auction.
According to the department of telecom, 3G spectrum will be given to three bidders in 17 circles, including Calcutta, Delhi and Mumbai. The other five circles will have four players.
Sources said Idea Cellular and Telenor-owned Uninor would bid but could limit their applications to specific circles. Maxis-owned Aircel has already put in its application.
However, there seems to be no standalone foreign bidders. While foreign firms are allowed to bid as 100 per cent entities, they need to engage an Indian partner and pay Rs 1,650 crore to obtain a licence to offer wireless services.
Verizon and AT&T are keen on entering the telecom sector through the 3G route. However, the skewed economics of the new 3G licence may keep them out, analysts said.
Tata Communications and London-based Augere — a wireless broadband services provider — said it would bid for wireless broadband. Tikona Digital Networks is also likely to bid for broadband radiowaves.
R-Com and Qualcomms interest in broadband may heat up competition as only two blocks of broadband spectrum are available.
The government has estimated revenues of about Rs 30,000 crore from the 3G auction.
According to the DoT schedule, the prequalification of bidders will take place on March 30 and mock auctions will be held on April 5 and 6. Auction of broadband spectrum will commence two days after the 3G auction.
The reserve price for pan-India 3G spectrum is Rs 3,500 crore, while it is Rs 1,750 crore in broadband. Winning bidders will have to pay the entire amount within 10 days, and they can commence services from September 1.
At present, telecom services are offered on the 2G platform, except BSNL and MTNL, which already offer the 3G service.
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