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Fresh 2G Auctions A Dud Affair; Govt Gets Just Re. 9407 Cr

NOVEMBER 15, 2012

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The auction for 2G spectrum has got a lukewarm response at best with Vodafone bagging additional spectrum in 14 circles followed by Idea Cellular with 7 circles.




Among the new players, Telenor and Videocon have managed to win back spectrum in only 6 circles each. Both these players had got licences in 2008 which now stand cancelled due to the Supreme Court order.



The Government will get just Rs 9,407 crore in all and further, the actual income this year will be much lesser as the operators can pay one-third  amount upfront and the balance in instalments. In addition, the bid money will be offset against the entry fee already paid by some of the bidders in 2008.



Had the government managed to sell all the spectrum it put on the block, it would have got at least Rs 27,000 crore. However, of the 176 blocks  on sale (each block of 1.25 Mhz), bids were received only for 101 blocks.



The key circles --- Delhi, Mumbai, Karnataka and Rajasthan --- had no bids. The final bid amount was higher than the initial base price only in Bihar.  All other circles were sold at the reserve price, indicating that they were auctioned without bidding.




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