3G spectrum auction to rake in nearly 70,000 crore; bids close

The government is expected to rake in revenues of around Rs 67718.95 crore, against the projected Rs45,000 crore, from the auction of spectrum for third generation (3G) telecom services as the over a month-long auctions came to a close today, with bids for a national licence closing at Rs16,828 crore.

Bharti Airtel, Vodafone and Reliance Communications are reported to have won 3G mobile spectrum in the key Mumbai and Delhi circles in the auction that lasted 34 days.

Vodafone Essar will pay about $2.5 billion for its India third-generation mobile spectrum, according to data on a government website. Bharti is paying about $1.24 billion.

At the current bid price, Bharti will pay the highest amount of Rs12,393.07 crore (over $2.5 billion) followed by Vodafone Rs11,517 crore, Reliance Rs8585.67 crore, Aircel Rs6115.23 crore, Tata Rs5864.07 crore and Idea Rs4605.75 crore for select areas of operation.

Nine mobile operators participated in auction and no single carrier has won spectrum for all 22 circles in the nationwide auction.

State-rum Mahanagar Telephone Nigam (MTNL) will have to  has to fork out Rs6467 crore for Delhi, Mumbai 3G spectrum, reports CNBC-TV18.

Meanwhile the government is expected to have a re-look at policies pertaining to the allocation of 3G spectrum in the light of the controversies surrounding the allocation of spectrum - both 2G and 3G.