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India to hold 3G spectrum auction 16 January

India will hold electronic auctions to allot radio bandwidth for third-generation, or 3G, telecommunications services Jan. 16, the Department of Telecommunications said Friday.

The department has set Jan. 5 as the last day for submission of applications, it said in the final guidelines for the 3G auction.

The department will auction two blocks of radio bandwidth, or spectrum, each for Delhi and Gujarat, and four each for most the remaining 20 service areas.

But, the top bureaucrat in the telecommunications ministry, Siddhartha Behura, said earlier in the day the government was not clear on the availability of spectrum in the service areas of Rajasthan and northeastern India.

The department has already reserved one block of spectrum each in Mumbai and Delhi for state-run Mahanagar Telephone Nigam Ltd., and one block each in all the remaining service areas for Bharat Sanchar Nigam Ltd., the other government-run telephony provider.

The two companies won't participate in the auction, but will have to match the highest bid price in the respective service areas as payment for the bandwidth.

Rollout obligations

The winning bidders will be given up to five years from the date of allocation of spectrum to roll out services in at least 90% of the service areas in Delhi, Mumbai and Kolkata, and 50% in other areas.

If a company fails to meet the target, it can get a one-year extension by paying a penalty of 2.5% of the spectrum-acquisition price per quarter."If the operator does not complete its rollout obligations even within the extended period of one year, the spectrum assignment shall be withdrawn," the department said.

Meanwhile, R.P. Agarwal, wireless adviser at the department's wireless planning and coordination wing, said earlier in the day the bandwidth for 3G services will be allocated 30 days after the auctions are completed.

The government has set the starting auction price at about INR20.20 billion for bandwidth across India.

A separate auction will be held for selling radio bandwidth for broadband wireless access, or Wi-Max, two days after the 3G spectrum auction.

Источник: Total Telecom

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