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57 percent of the 2G spectrum that was put up for the auction remained unsold.
In order to decide on price and date for auction of spectrum in the 1800 MHz band, the Empowered Group of Ministers (EGoM) on Telecom will meet soon. The Government plans to conduct the auction before 31 March, 2013 for unsold telecom circles–Delhi, Mumbai, Rajasthan, and Karnataka.
While addressing reporters, telecom minister Kapil Sibal said that there will be an auction before March and the procedure of the auction will be decided in another few weeks.
The telecom minister blamed “sensationalism” for the tepid response to the recently concluded 2G spectrum auction. The auction, which lasted just two days, got total bids worth Rs 9,407.64 crore, against the government’s target of Rs 28,000 crore.
It is notable that the revenue from this auction in the 1800 MHz band would not bring any respite to the Government, as the top three bidders—Telenor, Videocon and Idea– may opt for the deferred payment option, which will offset the 33 percent upfront amount.
However, the Government will get Rs 7,936 crore through one-time fee to be levied on incumbent telcos holding spectrum more than a prescribed limit.
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