3G bids up 73 per cent above base price

Bids for nationwide third-generation (3G) mobile spectrum licences in India rose 73 per cent above the base price to Rs6,068 crore ($1.36 billion) on Monday, the eighth day of the auction, when 46 rounds of bidding had been completed.

As of Saturday's close, the government will make Rs24,620 crore from the three slots of airwaves on offer as well as the price state-owned operators Bharatiya Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd, which have already been given 3G frequencies without having to bid for them.

The government is auctioning three slots of 3G airwaves in 17 telecom service areas and four in the other five. Only two slots are up for sale across the country for broadband airwaves, which will begin after the conclusion of the 3G auctions.

The metros of Delhi and Mumbai as well as the bigger cities of Maharashtra, Gujarat, Andhra Pradesh, Karnataka, and Tamil Nadu continued to witness maximum demand during Monday's bidding. Delhi, after losing its top position to Gujarat earlier, has emerged as the most valuable circle at a bid value of Rs626.37 crore, followed by the Mumbai circle at Rs598.59 crore, according to figures released on the Department of Telecommunications (DoT) website.

But even as metros and 'Category A' circles witnessed strong bidding, pushing the overall prices upward, the demand remained weak in large parts of the country. About 50 per cent, or 11 of the 22 circles, witnessed negative demand. These regions include Punjab, Haryana, Rajasthan, Madhya Pradesh, West Bengal, Himachal Pradesh, Bihar, Orissa, Assam, North East and Jammu and Kashmir. In fact, the last three have received no bids so far.

Nine mobile service providers, including Vodafone Essar Ltd and Bharti Airtel Ltd, are vying for the spectrum to offer 3G services in the world's second largest wireless market by subscribers. The auction, which began on 9 April, may take about two weeks to complete, government officials have said.

The government plans to sell 93 licences to provide high-speed data to mobile phones and computers. It will issue daily updates on the bidding and all data collected from bidders will be made public after the auction is over.