New Delhi- A government website announced on Saturday that auction for countrywide licenses in India’s sale of speedy 3G network have reached 2.65 billion dollars.
On Friday a bid of 120.69 billion rupees (2.65 billion) which was approximately 3.5 times the 35 billion rupee reserve rate declared by the government for an all-India slot.
Auction was believed to start off at 122.52 billion rupees even though closing numbers for Saturday are still awaited.
Nine mobile operators, inclusive of the country’s market leaders Bharti Airtel and Reliance Communications, are in the fray to bid for 3G airwaves which increased its customer base by an astounding 20.31 million.
The revenues from the auction that commenced on April 9, is slated to be a significant contributor towards refilling the gaping deficit in the budget.
The government is slated to earn more than 500 billion rupees in the bidding of 3G spectrum and a subsequent retailing of broad band airwaves announced Telecom Minister A. Raja.
Analysts feel that the bidding will be reaching the final stage and will end in a few days.
The sale, where in mobile companies are battling for very less spectrum space in the world’s fastest growing cellular market is believed to have pushed India into the Internet era.
There are approximately half a billion cellular consumers in the nation, of them only a fraction has Internet access through computers. Because of 3G network people will get speedy access to the internet through their mobiles.
Due to already fierce price competition in the over crowded cellular market, the 3G will put a lot of pressure on the financial aspect of India’s mobile manufacturers , believe analysts.
KPMG telecoms analyst Roman Shetty informed AFP that there won’t be any immediate revenues, also forecasting that mobile companies will only earn profits after 4-5 years after the decongestion of Indian market.
The huge amount involved have also diverted attention towards government decision 2 years back to confer 2G licenses on a “first-come, first-serves” basis instead of going in for auction. The Telecom Authority of India was given a cold shoulder when it suggested an auction.
Opposition leaders have alleged corruption and malpractices in the marketing of 2G licenses and have demanded that communications minister A. Raja should resign.
The involvement of few office bearers from the ministry and private companies is being investigated by Nation’s Central Bureau of Investigation.
Due to the suspected charges of irregularities in bestowing licenses, they raided offices the previous year.
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