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Lukewarm response to 2G auction in opening rounds

Posted on Nov 12, 07:36PM | UNI

The auction of the 2G Spectrum today opened to a lukewarm response with no bidders for Delhi, Mumbai, Rajasthan and Kolkata circles in the initial rounds, sources said.

Sources said that no applications were received for pan-India spectrum, for which the base price has been fixed at Rs 14,000 crore.

At the end of the first round, the sources said, there were no bidders for Delhi, Mumbai, Rajasthan and Kolkata circles.

They said that the lukewarm interest for the auctions could be due to the fact that the base price is much higher compared to what the companies had paid in 2008.

It is notable that the eGoM on Telecom had fixed the base price for pan India Spectrum at Rs 14,000 crore for 5 MHz of GSM radiowaves. Telecom companies had termed the base price for pan India Spectrum as too high.

Also the price of the Spectrum in all the 22 zones is more than seven times that paid by the companies in 2008.

India is divided into 22 telecom circles. Companies can bid for circles that remain unsold in the initial rounds.