3G spectrum bids to start at Rs 3,500 crore

The Empowered Group of Ministers, headed by the Finance Minister, Pranab Mukherjee has fixed Rs 3,500 crore as the minimum bidding price for the auction of 3G wireless spectrum. The panel also fixed the base price for WiMax spectrum for wireless broadband services at Rs 1,750 crore. The EGOM also decided that a total of five players would be allowed to offer 3G services in every circle, of which one slot would be reserved for state-owned telcos-BSNL and MTNL.

“This is final. We hope to complete the auctions within ninety days from today, and we expect to get a minimum of Rs 25,000 crore from these auctions”, said Thiru A Raja, Union Minister for communication and IT. This new reserve price is nearly Rs 500 crore lower than that agreed to by Raja and Pranab Mukherjee during their meeting with the Prime Minister, Dr Manmohan Singh.