India ups 3G base price of radio spectrum, sees auction within three months

NEW DELHI - India raised reserve prices for auctions of third-generation (3G) and fourth-generation (4G) radio spectrum by nearly three-quarters on Thursday.

Union Telecommunication Minister A. Raja said the long-pending sales would be held within three months.

He said the government expected at least 250 billion rupees from the sale, which analysts have said would help plug India’s fiscal deficit.

In its July budget, the government forecast the deficit would widen to 6.8 percent of gross domestic product in the year to March 2010, and pencilled in 350 billion rupees from the auction.

The auction, which would introduce high-speed Internet and video downloads on mobile phones, was originally planned for January but was delayed after the finance ministry wanted the reserve price to be doubled.

On Thursday, the base price for 3G spectrum was revised by a ministerial panel to 35 billion rupees from an original 20.20 billion rupees.

Firms bidding for fourth-generation Broadband Wireless Access (BWA) spectrum will have to pay a minimum of 17.5 billion rupees now, compared with 10.10 billion announced last year.

On this score, Raja said the auction would get over in three months.

“It (auction) will finish within three months,” he added.

India plans to auction the spectrum in 20 of the country’s 22 telecom zones for the time being, as it does not have available radio airwaves in the other two.

Bharti Airtel (BRTI.BO), the country’s leading mobile operator, said in a statement it looked forward to participating in the auction. (ANI)