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Monday, May 24, 2010

Govt expects Rs 15,000 crore through the broadband wireless spectrum auctions (BWA)-A.Raja

Telecom Minister A Raja on Monday said the government expects Rs 15,000 crore through the broadband wireless spectrum auctions (BWA).

The BWA auction has started today and it comes just days after the auctioning of airwave for third-generation mobile-phone operations that fetched the government over Rs 67,000 crore.

Eleven telecom companies, including Bharti Airtel, Vodafone, RCom, the Tatas and Qualcom are in the fray for two slots of spectrum. Telcos are expected to participate in the auction aggressively.

The reserve price is Rs 1,750 crore for a pan-India BWA spectrum licence. After experiencing success in 3G spectrum auction the government is now hopeful that the BWA auction would also bring higher revenue windfall. The government expected just Rs 35,000 crore from the sale of both 3G and BWA spectrum.


Apart from the above-mentioned players, Idea Cellular, Aircel, Augere Mauritius, Infotel Broadband Services, Internet Service Provider, Tata Communications Internet Services, Tikona Digital Networks and Vodafone Essar will also participate in the BWA auction.

Global investment bank Rothschild and telecom auction services provider Dot.econ are advising the government on the BWA auction.

The DoT says the aim of the auction is to award spectrum transparently and fairly to generate revenue for the public purse, ensuring effective competition and getting a market-determined price for the spectrum.

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