The bid price for 3G spectrum continues to rise as it touched Rs 10,749 crore (Rs 107.49 billion) for pan-India operations on the 21st day of auction, assuring the government of Rs 43,372 crore (Rs 433.72 billion) in terms of revenue.
According to sources in the Department of Telecom (DoT), the auction may go on for few more days indicating further hike in bid prices.
With all leading mobile operators like Bharti Airtel, Vodafone Essar, Idea, RCom and Tatas, among others, in the fray for procuring spectrum, the bid has surpassed all estimates.
Mumbai and Delhi continued to witness most aggressive bids with quotations going beyond the Rs 1,700 crore (Rs 17 billion) each for both circles against the reserve price of Rs 320 crore (Rs 3.2 billion) each.
Both Mumbai and Delhi circles have three slots available for auction. The government had originally estimated to collect Rs 35,000 crore from sale of spectrum (airwaves) for the third generation mobile services and Broadband Wireless Access (BWA).
With BWA spectrum auction yet to start, the total collections could be much more than originally estimated. Telecom Minister A Raja had stated earlier that the government may garner around Rs 50,000-55,000 crore (Rs 500-550 billion) by selling 3G airwaves and BWA spectrum. In all, nine mobile operators are up against each other for spectrum for 3G services, which allows subscribers to download hi-speed data and stream videos on mobile phones.
The radio waves are being auctioned across 22 circles. Successful bidders would be allotted air waves in September after the spectrum is vacated by the defence forces.
