[India] 3G Spectrum Auction on 12th February (Only 3 Slots available for Auction)
As per the latest draft of information from the Government,the auction of 3G spectrum will happen in India on 12th February 2010 and unlike the earlier information, the auction on 12th Feb will only be done for 3 Slots ( and not 4 as informed earlier).
A fourth slot has already been awarded to state-owned MTNL (that operates in Delhi and Mumbai) and BSNL (rest of India).
An analyst said the reduction was bad news for telecommunication providers.
“This is an overall negative move from the point of view of the telecom operators. In some markets, there are more than six GSM operators with at least seven-eight potential bidders. When there were four slots there was an artificial scarcity and now with three this could get far worse,” said a senior analyst with a Mumbai-based branch of an international brokerage, who spoke on condition of anonymity as he is not authorized to speak to the media.
“Earlier the bids were expected at one-and-a-half times the reserve price. Now this could easily go up to two or two-and-half-times the reserve price,” he added.
According to the draft, three slots will be auctioned in all of the circles or operating areas, but winning bidders will be allowed to start their 3G services only after 1 September. The ministry of defence is expected to vacate the remaining slot of 3G spectrum by then based on its memorandum of understanding (MoU) with DoT.
Via livemint
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[...] India’s 3G seems to have entered a never ending cycle. Earlier, Government had decided to auction 3 slots and let the operator start 3G operations by end of year, however, in a new twist of events, it [...]