Govt to auction only 3 slots of 3G spectrum

11 December 2009, 01:58am IST

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NEW DELHI: In a surprise move that could deprive
 it of over Rs 5,000 crore in revenue, the government
has said the 3G telephony spectrum
available with it for sale currently could accommodate
only three operators.

A fourth slot has already been awarded to state-owned
MTNL (that operates in Delhi and Mumbai) and BSNL (rest of India).
 It had earlier planned to auction spectrum to four private
bidders, in addition to the state-run firms.

The decision comes in the wake of the ministry of defence's
reluctance to vacate the designated spectrum (air waves) for
commercial use, official sources said, adding that the required notification would be issued soon.

The government has fixed the reserve price of spectrum
at Rs 3,500 crore for pan-India 3G spectrum and Rs 1,750 crore
for Wimax (wireless ineternet/broadband) and the auction is
scheduled to begin from January 14 next year.

The government had projected a revenue of Rs 25,000 crore
from the sale of spectrum, but this could now fall short of
estimates as it would have to forgo at least Rs 5,250 crore
due to cancellation of one slot.

Asked if the decision would require empowered group of ministers'
nod in view of the change, officials said it has been discussed by
 the members and would be formally notified.

On ministry of defence refusing to vacate the spectrum, officials
said as per MoU with the department of telecom, 10 MHz of spectrum
was vacated immediately and another 10 MHz would be given by June, 2010.

Source:PTI