There was a 34.46% increase in the price for the national licence for wireless broadband on day one itself. The price rose to touch Rs 2,353.18 Crore, which assures a minimum income of Rs 4,706.36 Crore.
Eleven providers bid 11 for two slots of the broadband wireless access (BWA) spectrum, amongst them were Bharti, Vodafone, RCom and the Tatas. The reserve price of Rs1,750 Crore has been fixed for a national BWA licence and the telecom minister A Raja is optimistic about earning Rs 15,000 Crore from the auctions.
Data available on the DoT website shows that the bids for Mumbai, Tamil Nadu, Karnataka, Gujarat, AP, Maharashtra and Delhi has touched Rs 233 Crore each, while that for Kolkata and Punjab was Rs88 Crore. Kerala got Rs 76 Crore, while Haryana and Rajasthan etc touched the price tag of Rs 60 Crore.
Bids made by the 11 bidders were submitted today. Earlier estimates made by the government for the sale of both BWA and 3G were Rs 35,000 Crore, but as 3G auctions, which ended few days ago, have earned Rs 67,719 Crore, there are no pre-determined estimates for revenue generation by BWA auction.
Companies like Idea Cellular, Augere Mauritius, Qualcomm, Spice Internet Service Provider, Vodafone Essar, Tikona Digital Networks, Aircel and Infotel Broadband Services.
After experiencing a runaway success of the 3G auction, the government, with the reserve price of Rs 1,750 Crore for BWA spectrum licence, is hopeful that this auction will also bring windfall revenues into its coffers.
Rothschild, Global investment bank and Dot.econ, telecom auction services provider have advised the government on this auction. BSNL and MTNL have already received the BWA spectrum, before private players. The two companies will pay the equivalent amount of the winning bid in each area.
Wireless broadband connections are expected to bring about a rapid deployment of the broadband business, like it happened for telecom few years back. The country has 8 million broadband connections today, this is a small number when compared to the 600 million phone connections.
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