India sets floor price for 3G, Wimax auctions

India has set the floor price for its long-awaited 3G spectrum auction, placing the minimum bid at 35 billion rupees ($717.5 million).

 

The government has also set a target of completing both the 3G and Wimax auctions within 90 days.

 

The 3G bid price was set as a compromise between telecom minister A Raja’s 40-billion rupee target, and the 20.2 billion rupee price set by regulator TRAI, India's Economic Times said. 

 

The group of ministers which set the prices has also declared that only five players will be allowed to offer 3G services in each of India's 22 telecom circles. Of these, one slot will be reserved for state-owned operators BSNL or MTNL.

 

Initially up to seven 3G players would have been allowed to operate in each circle, but spectrum remains tight in several of the most populous circles.

 

The ministers have also set the Wimax auction floor price at 17.50 billion rupees.

 

The government hopes to complete both auctions within 90 days, and expects to get a minimum of 250 billion rupees from the auctions, A Raja told the Times.

 

BSNL and MTNL have already been granted 3G and Wimax licenses, on the condition that they match the maximum winning bids from the auctions.