3G spectrum bids reach $1.3 bn on 7th day of auction

NEW DELHI/MUMBAI: Bids for an all-India licence to offer faster wireless services reached Rs 5,620 crore ($1.3 billion) on the seventh day of the auction, according to a statement on the department of telecommunications’ website. Nine telecom companies including Vodafone Group and Bharti Airtel are vying for the spectrum to offer third-generation (3G) services in the world’s second-largest wireless market by subscribers.

The government is auctioning spectrum for operating 3G services in 22 designated telephone zones. It plans to sell 93 licences to provide high-speed data to mobile phones and computers that may raise an estimated Rs 50,000 crore.

The internet-based auction could take as long as two weeks, according to Dan Maldoom, an economist at DotEcon, one of the two advisors to the government. NM Rothschild & Sons is the other advisor.

A pan-India licence could cost bidders as much as $2 billion, Macquarie Group’s regional head of telecommunications research Shubham Majumder estimated April 7. The government will issue daily updates on the bidding and all data collected from bidders will be made public after the auction is over.