Spectrum Auction for 2G: enters ninth round on demand in Bihar
The 2G spectrum auction which has worst return in its bidding way, now entered in the ninth round on Wednesday due to strongest demand for spectrum in Bihar telecom circle.
Reacting of DoT over this move is affirmative as under the second-generation (2G) spectrum, the government is selling eight blocks of 1.25Mhz airwaves frequencies in each of the 22 licence circles.
Last round of November 12 when in 7 rounds 98 blocks out of 176 of spectrum for auction was demanded at Rs 9,224.75 crore, showed huge demand for spectrum only in Bihar circle that would hit the price rates.
Although no bidders for spectrum in Delhi, Mumbai, Karnataka and Rajasthan, it has been expected that whether first round of 2G spectrums might end early on Wednesday in which five major telecos- Bharti Airtel, Vodafone, Telenor-promoted Telewings Communications Pvt. Ltd, Videocon and Idea Cellular have participated, without applying all permits.
The base price for 5 MHz airwaves frequency in the 1800 MHz band for GSM services on India basis was set by govt. on first Day was Rs. 14,000 which was too high to disappoint the bidders. And this is the main reason of no bidders for CDMA and now expected for GSM.