Communications and IT Minister Dayanidhi Maran is in favour of auctioning spectrum for 3G services and allowing international players to bid for the same. The Department of Telecommunications (DoT) is considering allocating spectrum for 3G services in the 2.1 GHz band through controlled e-auctioning for four mobile operators. In case Bharat Sanchar Nigam Limited (BSNL) or Mahanagar Telephone Nigam Limited (MTNL) do not feature in the top four, one PSU will be given a quota of spectrum provided it can pay the price quoted by the second highest bidder. The government is hoping to rake in at least Rs 80 billion through the auction and plans to set the reserve price for pan-Indian spectrum at Rs 14 billion per operator. This move is, however, contrary to the Telecom Regulatory Authority of India (TRAI)’s recommendations, which had stated that at least five operators be given 3G spectrum. TRAI was also against reserving spectrum for state-owned telecom companies.
