BWA auction ends; Govt to get Rs 38,617 crore

Infotel emerges as only pan-India bidder by committing Rs 12,872.52 crores

PTI | June 11, 2010



Exceeding all hopes, the auction for spectrum today ensured Rs 106,336 crore to the government, over three times the original estimate, with successful bidders for Broadband Wireless Access committing over Rs 38,617 crore.

Internet Service Provider Infotel emerged as the only pan-India winner for BWA spectrum by committing Rs 12,872.52 crore.

Along with the BWA proceeds, that the exchequer would get later this month, the Rs 67,719 crore received from 3G spectrum winners would help the government go a long way in managing its deficit and reduce borrowings.

In the Union Budget this year, Finance Minister Pranab Mukherjee had taken into account an estimated Rs 35,000 crore from sale of spectrum.

In BWA, the government auctioned two slots of 20 MHz each. Besides Infotel, US-based Qualcom bagged four circles of Delhi, Mumbai, Kerala and Haryana.

Qualcom would have to pay Rs 4,912.54 crore. Bharti also bagged four circles--Maharashtra, Karnataka, Kolkata and Punjab--for Rs 3,314.36 crore.

Aircel bagged eight circles, mostly in category B and C areas for Rs 3,438.01 crore.

On the lines of 3G, Mumbai and Delhi received the highest bid amounts of Rs 2,292.95 crore and Rs 2,241.02 crore, respectively.

State-owned BSNL and MTNL, which have been given BWA spectrum ahead of the private players, will have to pay the equivalent of the winning bid in each service area.

As many as 11 companies, including Bharti Airtel, Reliance, Idea Cellular, Aircel, Vodafone and Tata Communications Internet Services, participated in the auction for Broadband Wireless Access spectrum.

BWA spectrum enables high-speed Internet access as well as Internet telephony and TV services. It can also be used for voice and high-speed data services.

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