Nine in race for 3G, 11 for wireless access

NEW DELHI: Top mobile phone companies have bid for broadband wireless access spectrum, hedging their bets in case they do not win the auctions for coveted 3G airwaves.

Nine cellphone companies have joined the fray for just three 3G spectrum slots while 11 companies, including Bharti Airtel, Vodafone Essar, Idea Cellular, Reliance Communications and Aircel, have bid for broadband wireless spectrum, which will allow them to provide wireless internet services. “We expect intense competition for the three available spectrum slots,” analysts at JPMorgan wrote in a report that said the auctions could “stretch balance sheets amid ongoing price wars”.

Communications ministry officials termed the response to the auctions “overwhelming” and cited it as an indication that the government will meet its target of raising Rs 35,000 crore by selling spectrum.

The stock markets reacted positively to the interest by telecom firms in the auctions, anticipating that successful bidders will be able to boost revenues with the new services. Shares of Bharti Airtel, Reliance Communications and Idea Cellular rose by at least 2% while the benchmark Sensex closed 0.34% higher on Friday.