According to budget documents submitted by finance minister Pranab Mukherjee to the Parliament, the Government expects to raise about Rs 150 billion from the sale of spectrum in 2011-12, say news reports.
In 2010, the government had budged Rs 350 billion from the auction of 3G spectrum and broadband wireless spectrum, but the sale process totalled up to Rs 1080 billion, three times more than the estimates, and the record amounts helped reduce the country?s fiscal deficit.
The federal budget for 2011-12 estimates revenue of Rs 296.5 billion from communication services, that includes licence fee and spectrum usage charges paid by carriers and proceeds from broadband spectrum auctions.
Moreover, it is believed that the winning bid in last year?s auction for both 2G and broadband wireless airwaves may be the base price for the upcoming auctions.
The Telecom Regulatory Authority of India (TRAI) says that commercial telephony and wireless broadband services will require 500 to 800 MHz of airwaves over the coming years and has therefore recommended that airwaves held by various government agencies be re-farmed.
In its May 2010 recommendations, the regulator had said, ?The old assignments made to Defence and other government and public sector entities need to be immediately reviewed and replaced with the existing spectrum efficient technologies. The Authority is of the view that a medium and long-term plan for refarming of spectrum in different bands needs to be taken up and existing assignments should be shifted appropriately.?
