The Hindu Business Line : 3G auctions within 72 days of resolving pricing issue: DoT
Posted by telcobizpedia on June 18, 2009
via The Hindu Business Line : 3G auctions within 72 days of resolving pricing issue: DoT on June 18, 2009
Thomas K. Thomas
New Delhi, June 17
The Department of Telecom proposes to conduct auctions for third generation services spectrum within 72 days of resolving its differences with the Finance Ministry over pricing.
This was mentioned by the DoT in a recent presentation to high ranking government officials. However, the DoT will have to iron out the differences with the Finance Ministry first before it can set a date for the auctions.
Telecom Ministry officials said that expect the auctions to take place by September assuming that the policy issues are resolved.
Two issues
The DoT and the Finance Ministry differ primarily on two issues. One relates to the base price, with the Finance Ministry wanting it pegged at Rs 4,040 crore. The DoT wants it to be between Rs 2,020 crore and Rs 3,500 crore to keep the spectrum affordable.
The other difference is the number of slots to be auctioned. While the DoT wants eight operators to be given 3G spectrum, the Finance Ministry favours five.
The DoT officials said that the issues will be resolved since the Prime Minister has included the auction of 3G and broadband spectrum in his agenda for the first 100 days.
Sources said that another round of meeting between the Union Telecom Minister, Mr A. Raja, and the Finance Minister, Mr Pranab Mukherjee, will take place to arrive at a resolution.
The DoT officials said the issues will be sorted out before the Budget is presented.
