Cabinet begins 2G telecom spectrum auction today

Today will be the starting of bidding auction of 2G spectrum as the Cabinet is going to gain Rs.40,000 crore from auction for telecom spectrum get relief from cancellation of 122 telecom licences by the Supreme Court in February.

The bidding process belongs to major 8 companies-Uninor, Loop Telecom, Sistema Shyam, Idea Cellular including Spice Communications, Videocon, Etisalat DB formerly Swan Telecom , S-Tel and Tata Teleservices,  is reported to be started today.

A maximum of 11 blocks of airwave frequencies in each telecom circle, barring Delhi and Mumbai, where there are only eight blocks, are under the list of auction at high price.

Idea Cellular, Videocon and Telenor have already submitted bids for airwaves frequencies and will receive at least 5 Mhz of spectrum at Rs. 14,000 crore , fixed by govt. which is 7 times more than the price of 2008 auction. Where their licenses were cancelled, they will continue their services in blocks of 1.25 Mhz each.

Airtel, Idea Cellular and Vodafone are those who have need additional blocks in different  a telecom circles , but just two can come under bidding out of  Tamil Nadu, Kolkata, West Bengal, Orissa, Assam, North East and Jammu and Kashmir. However, SSTL under brand name MTS, will not participate in the auction.

Moreover, CDMA auction ahs already failed because of no bidders, and now with 2G spectrums the industry is unhappy. Some source said that the biffing process will be ended at the first day, while other said that government will not get its targeted revenues of Rs. 40,000 crore, may be reach at rake in between Rs.19,000- Rs.20,000 crore.

The permitting companies will have limited option to pay full amount of 33 per cent of final price by December 25 after that the amount will have determined that government will get from one-time levy on spectrum held by existing operators beyond 4.4 Mhz, source said.

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