The Department of Telecommunications (DoT) has announced guidelines for the auction and allotment of 3G spectrum. According to the guidelines, 3G spectrum will be auctioned in blocks of 2×5 MHz in the 2.1 GHz band. The number of blocks to be auctioned will vary from 5 to 10, depending on availability. The reserve price for one block of spectrum has been fixed at Rs 1.6 billion for the Mumbai, Delhi and Category A circles, Rs 800 million for Chennai, Kolkata and Category B circles, and Rs 300 million for Category C circles. State-owned operators, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) will be allocated 3G spectrum blocks at a price equal to the highest bid in the respective service area. Both domestic and international operators, with at least one year’s experience of offering 3G services, will be allowed to participate in the auction.
