3G Auction: Govt finally fixes reserve prices

Posted By: Staff
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New Delhi, Jun 19: Finance Minister Pranab Mukherjee and Telecom Minister A Raja reached a consenus on the 3G spectrum auction on Thursday, Jun 19. The government has finally fixed reserve price of Rs 4040 crore for the auction.

This move will help bring up at least Rs 32,320 crore and the process of auction is all set to begin soon. In the beginning stages, state owned MTNL and BSNL and six private operators will be allowed to offer 3G services.

The services will enables high speed internet, videos and many other value-added services on mobile phones.

Now the issue will go to empowered group of ministers for refinement of the programme for bidding.The auction is likely to begin in Aug 2009.

Keeping aside the issue of how much the government is ready to shell out, it is important to note that unless 3G service is affordable its success in price sensitive India would be doubtful.

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