Companies to get BWA spectrum ‘immediately’

NEW DELHI: The government will ‘immediately’ give broadband spectrum to the six companies that bagged these airwaves in the recently concluded auctions, but the launch of these services will depend on rollout plans of individual companies, a top telecom department official said on Friday.

The Centre is committed to handing over the 3G spectrum to all seven companies — Bharti Airtel, Vodafone Essar, Airtel, Idea Cellular, Reliance Communications, S Tel, Tata Teleservices — by September 1, said telecom secretary PJ Thomas. Telcos are expected to roll out high-end data services on mobiles within three to six months of being awarded 3G airwaves. The government also said that India will hold its next round of third generation spectrum auctions only after December 2012.

The combined revenues for the Centre from the 3G auction and the sale of broadband wireless access (BWA) spectrum is Rs 1.1 lakh crore. Earlier, the government expected to get Rs 35,000 crore only.

Global banking major NM Rothschild, which conducted both 3G and broadband auctions, has got a commission of Rs 30.5 crore from the government. This is because, prior to the auction, the government had agreed to pay Rothschild 0.115% of the difference of the final bid amount and the reserve price as its fee for conducting the bidding process.

Infotel Broadband, the only firm that bagged BWA spectrum in all circles, was acquired by Mukesh Ambani-led Reliance. The department of telecom (DoT) officials clarified that this deal was not in violation of any laws. “Spectrum cannot be sold, but change of ownership is permitted,” said JS Deepak, joint secretary, DoT. Officials also dismissed criticism from operators as well as analysts that the faulty auction process had led to companies placing high and irrational bids. Other companies that won BWA spectrum are Bharti Airtel, Qualcomm, Tikona Digital Networks, Aircel and Augere (Mauritius).