3G spectrum auction put off till January

MUMBAI: The much-awaited auction of 3G spectrum will now be held in January as the department of telecom (DoT) does not have adequate airwaves in nine out of 22 circles. Delay in spectrum vacation by the defence forces, coupled with the holiday season in December, has pushed back the process that could bring about Rs 40,000 crore to the treasury.
The global financial turmoil notwithstanding, DoT has framed a schedule to complete the auction by January after the finance ministry expressed concern over the delay in the process. The ministry had written to the DoT on October 13, to conclude the auction at the earliest.

However, according to sources, DoT is still in talks with defence ministry to get the spectrum vacated in the 2.1 Ghz 3G band in nine circles. ���We do not have enough spectrum available in the 2.1Ghz band. Similarly, in the 2.5 Ghz band (for WiMax), we have one block of 25Mhz and another of 15 Mhz. Steps are on to get this changed to two blocks of 20 Mhz each, for which consultations are on with the department of space and their decision is awaited,��� sources told ET.

In the 2.3 Ghz band (also for WiMax), spectrum being used by various public sector organisations is being reframed to ensure that 40Mhz is available for auction.

The auction was earlier scheduled in December. ���The last fortnight of December, being holiday season, would not be the best time for conducting an international auction of this magnitude. This new timeframe will be sent to the finance ministry early next week,��� said the sources.

���As per the new timeline, DoT is targeting to sign contracts with successful bidders and receive the first tranche of auction money (25% of the total) by January 31,��� they added.

Consultation with stakeholders, auction design, preparation of bid document and design of auction site by e-auction agency N M Rothschild, will be over by November 30. Subsequently, DoT will invite parties to bid and undertake testing of auction platform and software. This will be completed around mid-December. Auctions in all the circles will be completed and winners will be announced by January 15. ���We hope to sign contracts with successful bidders by January 25,��� sources said.