Broadbandindia Magazine

The department of telecommunications will start the 3G spectrum auction process from January 14, 2010. Auctions for CDMA spectrum band in 800 Mhz and broadband wireless access (WiMAX) will be held two days from the close of the 3G auctions. The 3G spectrum auction process has been split up in four stages – invitation stage (Application), pre-qualification (Evaluation), auction (Bidding) and grant of spectrum (Final Approvals).

Besides, announcing the dates, the government also notified that the foreign firms would be allowed to bid for spectrum for third generation mobile services. “Interested foreign entities are allowed to participate in the auctions directly and apply for licences subsequently,” informed the revised Information Memorandum. Though the foreign companies, if win the bid, would have to procure a license to initiate their telephony services in India before they commercially launch 3G.

The Information Memorandum (IM) provides details in regard to the eligibility criteria and time schedule. It also gives out particulars of the spectrum charges that will be paid by the successful bidders over the spectrum acquisition fee. An annual spectrum charge will be levied on the total adjusted gross revenue of 2G and 3G services taken together. However, there would be a moratorium of one year on the payment of annual spectrum charges for the standalone 3G operator. No moratorium would be applicable to existing operators holding both 2G and 3G spectrum. In the metros, the licensee to whom the spectrum is allocated would be required to provide services in at least 90% of the area within five years, said the memorandum while also detailing out the number of blocks available in each circle for auction.

According to the new schedule following is a brief timeline for the auction:

• Deadline for submission of questions for pre-bid conference: 13th November ‘09
• Pre-bid conference: 16th November’09
• Final Date for Applications: 21st December’09
• Pre-qualification of Bidders: 7th January, 2010
• Mock Auction: 11-12 January ‘10
• Start of the 3G Auction: 14th January ‘10

Besides, the IM also says, “there is no pre-set timetable and the Government reserves the right to determine the overall timetable of the Auctions or to amend it from time to time.”

The 3G auction in the Indian region has been delayed for over a year now pertaining to various reasons arousing on different situations. Earlier the 3G auction was scheduled to start by the end of the current calendar year.

But the process was delayed with the Department of Telecommunications (DoT) failing to release the prerequisite Information Memorandum. Further issues arose with the Defence Ministry in vacating the radio bandwidth required by the telecommunications department for the auction that postponed the dates.

With, yet again, the dates set for the 3G auction to take place we believe, and hope, that things don’t turn sour for the operators this time, waiting for the allotment of the spectrum to offer the high-end services to their users in the country.