The Hindu Business Line : 3G auctions put off again

The Department of Telecom has put off the auction for third generation (3G) mobile spectrum yet again without specifying a new date. The auction was supposed to take place on January 30.

This is the second time that the Government has pushed back the auction date. Earlier, it was announced that the spectrum would be put on the block on January 16. This time, however, DoT has not specified when the auction is likely to take place. “The revised time line for auction of 3G and broadband wireless access spectrum will be notified shortly,” DoT said.

Though DoT has not officially given any reason for the delay, sources said that there were differences between various ministries over the base price.

While DoT had decided to set a base price of Rs 2,020 crore, the Finance Ministry wanted it to be doubled to Rs 4,040 crore.

DoT sources said that legal opinion is being sought to know whether the recommendations of the telecom regulator would be required again in case the base price is changed. If the issue is sent back to TRAI then the auction may get delayed by a few months.

The industry is also divided on the timing of the auction. While the existing GSM players, including Bharti Airtel, are keen to have the auction right now, other players like Reliance Communications are not too enthusiastic.

A number of players have told the Government the ongoing credit crunch will impact their ability to quote higher sums during the auction which in turn could result in lower revenues for the Government if it goes ahead with the spectrum sale now.

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3G spectrum auction postponed to Jan 30

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