3G spectrum auction to start on 14 January; slot for 4 private bidders

The auctioning of third generation (3G) mobile spectrum will commence as scheduled from 14 January next year and allotment would be made to four private bidders by August.

"The empowered group of ministers (EGoM) has decided to auction 3G spectrum for four slots as per original schedule," telecom minister A Raja said after a meeting of the EGoM chaired by finance minister Pranab Mukherjee.

This will take the number of operators in the 3G spectrum space to five (including state-run BSNL-MTNL combine). The government will also receive an estimated Rs25,000 crore from the sale of 3G spectrum.

While the defence ministry has not yet vacated the required spectrum, Raja said, "there is a consensus in the EGoM on vacation of spectrum and it would be allotted simultaneously to all the four winners by August 2010."

Existing UAS/ CMTS licensees are eligible to apply for the 3G spectrum auction. Other operators having prior experience of offering 3G services are also eligible to apply after giving an undertaking of acquiring a UAS licence before commencing operations.

Foreign operators are allowed to bid as 100 per cent foreign entities. However, spectrum will be allotted only through an Indian company after it acquires a UAS licence.