3G auction not happening this year

The never-ending saga of auctioning 3G telecom services in India is likely to be extended beyond 7 December, the target date that the government had last announced. (See: 3G spectrum auction set for 7 December)

Not only is the defence ministry being tardy about parting with some of the excess spectrum it holds, but the government and its department of telecommunications have yet to come out with clear guidelines on the terms and conditions of the auction.

The government, of course, remains falsely optimistic. "There has been interest from various foreign companies in the planned 3G auction," telecommunications minister A Raja told in Geneva today. Exuding confidence, he said the auction of 3G and Wi-Max spectrum would generate at least Rs25,000 crore in revenue for the Indian government.

However, potential bidders are still awaiting a revised schedule for the release of the tender document, according to a report in  The Economic Times . The document, which would give details of licensing policy and auction guidelines, was supposed to be released on 29 September.

A tender document is usually released at least three months ahead of the bidding, to give potential buyers time to examine and evaluate the requirements and terms of the contract. The department of telecommunications had set 8 October as the deadline for submitting questions for a pre-bid conference.

DoT officials claim the document is ready, and would be published soon. However, it has not given a specific date.