Communications and IT Minister Kapil Sibal said the Government was happy with the outcome of the auction after telecom companies put bids worth Rs 61,162 crore.

“I am very happy to report that auction is over. The total revenue that will come to Government is Rs 61,162.22 crore. To that extent particular auction has been extremely successful,” Sibal told reporters after the auction ended.

When asked if the steep price for spectrum would result in higher tariffs, Sibal said that he hoped the tariffs would remain reasonable, “Ultimate objective is that service must be provided efficiently and at a relatively affordable price. We hope the tariffs will remain reasonable in the years to come.”

Telecom Secretary MF Farooqui said the impact on tariffs can’t be predicted. “The price eventually depends on number of things – sentiments, economics and also getting greater regulatory and clarity. It would also mean better topline for the companies.”

Farooqui said that the objective of the Government was to fix reserve price and then create a situation in a transparent way where market forces can operate.

The Government sold 81 per cent of all spectrum available. About 78 MHz of spectrum in the 1800 MHz band remained unsold. “We will have to take a call on the unsold spectrum separately, but won’t happen immediately,” said Farooqui.

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