Pan-India 3G bid hits Rs 16,531 crore

NEW DELHI: Bids for 3G spectrum continued to rise on the 33rd day on Tuesday with the pan-India price touching Rs 16,531 crore, a figure that may not allow operators to offer affordable services.

The auction is likely to close anytime now with only five circles — Delhi, Kolkata, Punjab, Himachal Pradesh and Bihar — showing excess demand for the spectrum. In the other service areas, the demand was either equal to supply or in the negative zone.

As per the rules, the auction will have to close simultaneously in all the 22 circles. Hence, even if there is excess demand in just one circle, the process has to continue. At Tuesday’s price, the government would get over Rs 66,600 crore against an estimated revenue of Rs 35,000 crore from the sale of both 3G and Broadband Wireless Access (BWA) spectrum.

The BWA auction will begin two days after the one for 3G spectrum is closed. Delhi continued to be the most expensive 3G circle, with bids quoting over Rs 3,284 crore, followed by Mumbai at Rs 3,183.10 crore. The reserve price for both these circles is Rs 320 crore each.