Rs. 3,705 crore approved as Base Price for 3G Auction by Cabinet
The Cabinet has fixed the starting price at Rs 3,705 crore per MHz for the auction of 3G spectrum which is slated to start on March 4 . By this the government is aiming to earn a net profit of Rs 17,555 crore. However, operators are afraid that the high starting level could drive up voice and data tariffs. The winners of the auction will have to make an upfront payment of 33% of the final bid amount to the government within 10 days of the close of the bandwidth sale. Rest amount can be paid after a moratorium of two years in 10 equal installments. A 5 MHz block of 2100 MHz airwaves typically used for 3G services will be offered in all service areas except Jammu & Kashmir, Bihar, Himachal Pradesh, West Bengal and Punjab. Thus, a total of 85 MHz in 17 service areas is being put to auction. The Centre expects to generate Rs.5,793 crore from the 3G sale alone this year. However, the overall proceeds from auctions will rise substantially, as including the 2G (800 MH...