3G auction by March; but only three players in most circles

The auction for spectrum to offer third-generation mobile services will be completed by March, telecom minister A Raja told newspersons in New Delhi on yesterday.

''The government is very keen to complete the 3G auction process well within the financial year (ending 31 March) and most likely will issue a notice inviting applications this week,'' Raja said.

However, it is widely reported that finance minister Pranab Mukherjee, who is the chairman of the empowered group of ministers on 3G, wants the auctions to be over by February so that the revenue it generates can be reflected in the budget.

The government has fixed Rs3,500 crore as base price for pan-India 3G spectrum and Rs1,750 crore for wireless broadband or Wimax services. The government also wants the winners of the auction to pay the entire bid amount upfront, even though the services cannot actually be launched till at least September.

Final details of the policy, including 3G slots, payment procedures and spectrum availability, will become public later this week when the Department of Telecommunications formally seeks proposals.

In view of the shortage of spectrum, the government is understood to have decided to allow four private 3G operators in only five circles (mainly the metros), with three operators in the rest of the circles.