savramesh 37 Report post Posted June 12, 2009 Economic Times 12 Jun 2009, 0126 hrs IST NEW DELHI: The communications ministry is set to tell the Union Cabinet that it is open to increasing the reserve price for the auctions of pan-India third generation (3G) spectrum to Rs 3,540 crore and auction up to eight slots of 3G spectrum. As per the existing 3G policy unveiled by the communications ministry late last year, the reserve price for pan-India 3G spectrum is Rs 2,020 crore and accommodating five players per circle. The department of telecom is of the view that hiking the reserve price for these airwaves will ensure that the finance ministry does not put up any fresh roadblocks for the upcoming 3G auctions, which is vital for high-end services such as video conferencing and high speed internet on mobile handsets. Spectrum is the airwaves on which telecom signals travel and is the lifeline for all telcos. This comes as the Union Cabinet is set to consider the proposal for the auction of radio bandwidth for third-generation (3G) mobile services within the next two weeks, rather than routing it through a group of ministers (GoM), fast-tracking the much-delayed process. The DoT will also tell the Cabinet that the total number of players who will be allotted 3G spectrum can be raised from the current five to about seven to eight per circle. The move is aimed at addressing the concerns of the finance ministry which fears that a lower base price would result in the government failing to meet its targets of raising about Rs 40,000 crore for these auctions. Increasing the number of slots will lead to higher revenues from the auctions as this will enable more Indian operators and also players from abroad to bag these airwaves. At the same time, the DoT in its note to the Cabinet will also state that even as it open to hiking the reserve price, it prefers to retain the base price at 2,020 crore as specified under the existing 3G policy. The DoT’s logic behind the Rs 3,540 crore figure is that it is between the Rs 2,020 crore suggested by the DoT and the and the Rs 4,040 crore demanded by the finance Ministry. The DoT has arrived at this figure (Rs 3,540 crore) by doubling the reserve price for Delhi, Mumbai and category A circles and increasing it 1.5 times for Kolkata and category B circles retaining the current base price for category C circles, according to a top executive in the communications ministry. Share this post Link to post Share on other sites
savramesh 37 Report post Posted July 6, 2009 3G spectrum auction may fetch Rs 35,000 cr to Govt. Source New Delhi (PTI): The government has made a provision of collecting a whopping Rs 35,000 crore from the auction of third-generation (3G) radio spectrum. The Budget estimate of 2009-10 includes a sum of Rs 35,000 crore as expected revenue from auction of 3G spectrum, Finance Minister Pranab Mukherjee said in Budget papers. The Department of Telecom collects spectrum charges akin to royalty for the use of spectrum as well as the licence fee for possession of wireless equipment from service providers having telecom service license. Just few days before the Budget, Government had decided to fix the reserve price at Rs 4,040 crore and allow seven operators to offer 3G mobile services. The auction, when happens would allow telecom firms to offer services such as high-speed Internet and video downloads on mobile phones. Telecom Minister A Raja has already said the auction could happen by December. The government had initially aimed to get Rs 20,000-25,000 crore. The sale has been deferred twice. The finance ministry wanted the floor price of the auction to be Rs 4,040 crore double of what the DoT had suggested. According to the guidelines, the government planned to conduct auction for 20 of India's 22 telecom zones and had said companies could bid for four slots in most of these areas. Share this post Link to post Share on other sites
kshah 452 Report post Posted July 6, 2009 Yet another way to delay 3G. Share this post Link to post Share on other sites
me_saket 73 Report post Posted July 6, 2009 Yet another way to delay 3G. i got habituated to listen to words like '3G' and 'delay' at same time, hope u will also. Share this post Link to post Share on other sites
kshah 452 Report post Posted July 6, 2009 ^^^ Yes, I am slow learner, will learn to take it easy very soon... :-) Share this post Link to post Share on other sites
vvinayakpai 26 Report post Posted July 7, 2009 Initially when I heard the word 3G, I thought it was associated with speed and fastness. But now I have learnt that the synonym for 3G is red tapism. Share this post Link to post Share on other sites
