The 3G spectrum auction is back on the table. On Jan-2, we reported that the 3G spectrum reserved price is likely to be doubled at the behest of Finance Ministry to Rs 4,040 cr and it looks certain now.
The Government would now auction up to six blocks per circle (excl. one block given to BSNL/MTNL). We expect the bidding to be more rational and likely closer to the Reserve Price, as spectrum supply would now be closer to the likely demand (6 large operators per circle). At the Reserved Price, Government will fill its coffers in exces of USD 5.5 Bn.
This chart shows the spectrum availability and reserved price across various circles in India. Rajasthan is likely to see some hectic bidding because of just 1 block being made available for bidders.
Stay tuned for more updates and complete analysis of 3G in India.