The 3G bidding process going on in India these days is picking up heat and the day two of Indian 3G auctions has ended with bids surpassing more than $900 million, according to the Department of Telecommunications (DoT).
According to Business Standard
“Bids rose on the second day of India’s multi-billion dollar third-generation (3G) auction, with one provisional winning bid for national cover touching Rs 4,085 crore ($922 million), or about a 17 per cent premium to the base price, government data showed.”
Four bidders are competing for three spectrum lots in Delhi. The metro received the highest bid amount of 3.92 billion rupees followed by Maharashtra, Andhra Pradesh and Tamil Nadu, which all ended on bid amounts 3.81 billion rupees on Saturday.
The reserve price for Delhi service was 3.2 billion rupees. India’s biggest cellcos – Bharti Airtel, Reliance Communications, Vodafone Essar, Tata Teleservices, Idea Cellular and Aircel – are aiming for a pan-Indian 3G footprint. Smaller GSM1800 players – Videocon, S Tel and Etisalat – are seeking 3G spectrum in selective circles only.
Pyramid Research has estimated nationwide spectrum could cost a winning bidder up to $2.3 billion. The 3G auction started on Friday, and is expected to heat up as bidding continues over the next eight to 12 days. No bids have yet been received for Orissa, Assam and Jammu & Kashmir circles. Only one bid has been lodged for the Himachal Pradesh, North East, Haryana and Punjab circles.
The auction is one of the major 3G auction in the South Asia region and will prove a catalyst. Neighboring countries like Pakistan, China, Sri Lanka and Bangladesh will soon follow suit.
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