Govt begins 3G auction process

In a bid to launch third-generation (3G) mobile phone service in the beginning of next year, the Department of Telecommunication (DoT) on Monday started the spectrum allotting process. DoT had convened a pre-bid meeting for selecting an online auction agency that would conduct the Internet based bidding for 3G spectrum.

A seven-member intern-ministerial committee in the leadership of Member (Finance) in the Telecom Commission present at the meeting would confirm the final list of auctioneer and also supervise the whole auctioning process. The final list would be opened by the end of September.

The intern-ministerial committee received request for proposals (RFPs) and met some of the representatives of those parties. However, it was also decided that the bids for the e-auction agency would be submitted on September 22 and would be finalised by Sep 30.

Earlier in the 3-G policy, the government has invited all the national and international players who qualify the eligibility criteria of being an e-auction agency as per DoT guidelines.

In the issued guidelines, DoT had stated that only those neutral agencies that had not any direct or indirect stake in any telecom or Internet Service Provider (ISP) firm in India would be eligible for bidding. Similarly there should be no stake of any telecom or ISP into Bidder Company too.

Besides, the bidder company must have at least five e-auction experience of total worth of at least Rs. 2,500-crore in last three years to be eligible for bidding.

For taking participation in the e-auction process, the bidding company will have to submit a non-refundable processing fee of Rs. 50,000 and must have a paid-up equity of more than Rs 10 crore. In addition, the bidding company and its significant equity holders must also have a combined net worth of at least Rs 25 crore.

According to sources, after selecting the final auctioneer that is expected to conclude by the end of September, DoT along with elected auctioneer will finalise the auction design in October, and the auction for 3G Spectrum allocations will be held in December.

The e-auction agency will also conduct the bidding for Broadband Wireless Access (BWA) besides 3G Spectrum for telecom. The 3G-service is likely to begin from the first quarter of the next year, as per decided schedule, the sources added.