3G + WiMax Spectrum Auction to be Delayed

Close on the heels of DoT postponing the auction of 3G and WiMax Spectrum auction, the Finance Ministry has proposed to double the base spectrum charges for both 3G and WiMax. The reserve spectrum charge for 3G which was Rs 1650 2,020 crore earlier is now proposed to be Rs 4,040 crore while that for WiMax will be Rs 1,650 2,020 crore. [Excluding Rajasthan and North East where no spectrum is available, the reserve will be Rs 1,910 cr and proposed by FM will be 3,820 cr]

This proposed hike in reserve price unlikely to have any major impact on 3G bidding because the business case suggests that operators can shell out up to Rs 5,000 crore for pan India 3G license. However, for Wimax BWA spectrum the fees definitely looks higher as the Government was determined to push broadband to every remote corner of India. Any additional levies of administration fees, revenue sharing etc will impact 3G bidding.

The New Schedule for 3G + WiMax BWA Auction is as follows:

  • Final Date of Applications – Jan-15
  • Publication of Ownership Details – Jan-16 to Jan-19
  • Bidder Ownership Compliance Certificates – Jan-20 to Jan-21
  • Pre-qualification of bidders – Jan-22
  • Mock Auction – Jan27 / Jan-28
  • 3G Spectrum Auction on Jan-30th
  • WiMax BWA Spectrum Auction – 2 days after close of 3G

Update your calendars and stay tuned for latest updates.