After confirming the minimum license fees, the Indian government has now outlined the timetable for the long delayed 3G license auction. The auction itself will start on December 7th, with applications to take part being submitted between Oct 26th and Nov 13th.
A second planned auction of CDMA and WiMAX spectrum will take place, as planned, two days after the 3G license sale is completed.
The formal tender documents are expected to be published on September 29th, and prospective bidders will have to outline in full their financial backers before being permitted to enter the auction.
A pre auction conference is to be held on the 12th October, with a mock-auction a couple of days prior to the main sale to check everything works as planned.
The base price for pan-Indian 3G spectrum at Rs 3,500 crore (US$714 million). The reserve price for WiMAX spectrum has been set at Rs 1,750 crore.
Both Indian and foreign companies are allowed to bid for the licenses, but foreign companies will have to set up joint ventures with Indian investors to run services in the country.
3G license holders will be granted 5 Mhz spectrum and the WiMAX (BWA) license winnders will get 20 Mhz. The CDMA license will offer 1.25 Mhz of radio spectrum.
Winners will be required to pay a deposit within 5 days of winning, and the full amount within two weeks.
Two companies, Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd., were allotted 3G spectrum ahead of the auction, and have started offering services. The government said last year that these companies would have to pay license fees equal to the highest bid in each service area.
Courtesy: Cellular News, PC World.