BANGALORE, India — India is set to stage its long-awaited auction of 3G wireless spectrum on Dec. 7, followed by bidding for EVDO and WiMax spectrum two days after completion of 3G auctions.
A mock auction is scheduled for Dec. 3-4, according to a notification by the Department of Telecommunications issued on Sunday (Sept. 13).
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The agency also will issue an information memorandum on Sept. 29 addressing security concerns requiring applicants to provide ownership details along with compliance certificates to ensure no surprises during auction process.
Applicants must provide details of their ownership by Nov. 13.
The base price for a 3G license was fixed at about $780 million last month. Both Indian and overseas companies can bid, but outside bidders must have Indian partners, according to auction rules.
Successful bidders must pay the bid deposit amount within five days, and the remainder within 15 days. Four 3G slots of 5 MHz each are being auctioned to private companies, while one slot has already been allotted to two state-run companies, Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd.
Both companies have already started offering 3G services, but have been able to attract only about 2,000 subscribers each. The state-run enterprises will pay an amount equal to the highest bid during the December auction.
Three 20-MHz slots at a reserve price of about $350 million and one 2X1.25-MHz slot of EVDO spectrum priced at about $180 million are on the block in each region open for bidding. While carriers have been conducting pilot tests for some time, services are not expected to arrive until next year.
—K.C. Krishnadas is site editor of TechOnine India
