3G auction earns India 14.6 billion dollars
The provisional results were posted on the Department of Telecommunications website after 34 days of frenetic bidding that saw the price of a pan-India licence soar to more than 3.6 billion dollars -- way beyond the reserve price.
Nine cellular firms, including Indian market leaders Bharti Airtel and Reliance Communications, had participated in more than 180 rounds of bidding.
The provisional winning price for one slot of bandwidth to offer super fast third-generation services across India was 168.2 billion rupees (3.6 billion dollars), from a starting bid price of 35 billion rupees.
None of the bidding firms won 3G mobile spectrum in all 22 service areas up for grabs, but Bharti, Reliance and Vodafone Essar all won spectrum in the key -- and most expensive -- Delhi and Mumbai areas.
The government’s provisional revenue from the sale was estimated at 677 billion rupees (14.6 billion dollars), which will go a long way to plug a yawning budget deficit.
The government had originally budgeted revenue of 350 billion rupees from the auction, which is seen as propelling India decisively into the Internet era.
There are nearly half a billion mobile phone subscribers in India, only a fraction of whom have access to the Internet via computers. New 3G networks will give people fast access to the web from their handsets.
But analysts say the high cost of the 3G spectrum could strain the balance sheets of India’s telecom companies, which are already under pressure from a savage price war in the congested mobile market.
"There is not going to be any quick payback," KPMG telecoms analyst Roman Shetty told AFP, predicting companies would only start earning money from their investments in four or five years.
Bharti, India’s largest wireless operator, and Reliance each posted winning bids in 13 regions at a total cost respectively of 123 billion rupees and 85.9 billion rupees.
The hefty final bids will prove a financial headache for state-owned telecom firms BSNL and MTNL, who were awarded 3G spectrum a year back on condition that they would match the auction prices.
3G allows mobile phone users to surf the Internet, video conference and download music, video and other content at a much faster pace than the current second-generation or 2G service.
India is the biggest major economy not to have widespread 3G services. Fellow emerging market giant China started offering them last year.
The winners will be awarded spectrum in September, which means rollout of 3G services will be possible only by the end of 2010 or early 2011.
For at least the first year, the main focus is expected to be on improving call quality. 3G uptake in India is expected to be slow in the initial stages as 3G handsets are costlier than 2G handsets.
Asia
Georgian opposition holding march in Tbilisi protesting against elections outcome
2 people killed, 15 injured as a passenger bus overturned in Istanbul-PHOTO
5.0-magnitude earthquake jolts off eastern Indonesia
Hezbollah attacked Israeli military base
NEWS FEED
President of Ghana arrives in Azerbaijan to attend COP29
Georgian opposition holding march in Tbilisi protesting against elections outcome
President Ilham Aliyev met with President of Guinea-Bissau-PHOTO-UPDATED
President Ilham Aliyev met with President of Zimbabwe
Serviceman of Azerbaijani Army injured after stepping on a landmine
President Ilham Aliyev met with Prime Minister of the Democratic Republic of Sao Tome and Principe
President of Suriname expressed his gratitude to President Ilham Aliyev for organizing such a prestigious event
COP29 launches Daily Show TV programme
President of North Macedonia arrives in Azerbaijan
Vice-President of Angola arrives in Azerbaijan to attend COP29-PHOTO
Georgian Prime Minister to participate in COP29 in Azerbaijan
President Ilham Aliyev met with President of Zimbabwe-PHOTO
President Ilham Aliyev met with Prime Minister of the Democratic Republic of Sao Tome and Principe-PHOTO
President Ilham Aliyev met with President of Suriname
President of Zimbabwe visited Azerbaijan-PHOTO
British Ambassador: COP29, the world's largest climate conference, starts tomorrow
President of Guinea-Bissau is on a visit to Azerbaijan
Secretary General of the Council of Muslim Elders has visited Azerbaijan
Russia downs 23 Ukrainian drones over four regions last night-VIDEO
COP29 green zone tickets now on sale
Jordan didn't submitt film of Armenian-origin director for the Oscar award
2 people killed, 15 injured as a passenger bus overturned in Istanbul-PHOTO
Tens of thousands protest in Valencia over floods
Europe on the verge of sweeping changes — Hungary’s Foreign Minister
Trump established inauguration committee — politician’s team
5.0-magnitude earthquake jolts off eastern Indonesia
Croatia condemns assaults against foreign workers
Hezbollah attacked Israeli military base
Mauritius holds election with cost of living on everyone's minds
Russia ratifies comprehensive strategic partnership treaty with North Korea
Ukraine commander says North Korea troops prepare to fight alongside Russian troops
Germany calls on Azerbaijan and Armenia to take decisive steps regarding peace agenda
Number of injured in gas blast in residential building in Moscow up to 7
Ukraine says plans underway for Zelenskyy-Trump meeting
German Chancellor made phone call to Azerbaijani President
Four years pass since Armenia’s signing act of capitulation
Thousands protest over handling of Spanish flood disaster
Biden, Trump set to meet Wednesday in Oval Office
Real Madrid, despite injury crisis, thrashes Osasuna
Iran foreign minister denies plot to kill Trump
EU aims to train 75.000 Ukrainian soldiers by the end of winter, says Borrell
Trump adviser says priority in Ukraine is peace, not return of territory
EU preparing 15th package of sanctions against Russia - Borrell
Biden invites Trump to meet at White House next week
Hamas did not receive official notice to leave Qatar
Head of EU delegation to Azerbaijan congratulates Azerbaijan on the occasion of National Flag Day
Qatar to pause Gaza ceasefire mediation
UK's Queen Camilla to miss Remembrance Day events due to chest infection
EU foreign policy chief Borrell arrives in Kyiv for official visit
Great delegation to represent Chile in COP29