Govt maps out 3G availability; auctions may earn Rs 21,480 cr

The department of telecom (DoT) has finally mapped out the availability of third generation (3G) airwaves that can be put up for the upcoming
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auctions across the country. The plan shows that the government can earn over Rs 21,480 crore if the frequencies are auctioned according to the finance ministry’s formula.

The finance ministry wants all available radio frequencies to be auctioned and the base-price for the airwaves to be doubled. On the other hand, the communications ministry wants to limit the base-price at Rs 2,020 crore per player and restrict the number of players to a maximum of seven.

Spectrum or radio frequencies are airwaves on which telecom signals travel. The availability of 3G spectrum, vital for high-end services, such as video conferencing and high-speed internet on the mobile, varies across different regions of the country, according to an internal note of DoT.

The telecom ministry’s latest assessment reveals that only four private players can be given airwaves for offering these high-end services in Delhi, while in Mumbai, there is enough frequency for eight players. Key circles, such as Andhra Pradesh, Karnataka and Tamil Nadu, have space for 11 private players each. A minimum of six private operators can be given these airwaves in all circles except in Uttar Pradesh, Himachal Pradesh, North East, West Bengal and Rajasthan. (refer table).