2G Spectrum Auction - Nov 12,2012

The auction — following the Supreme Court decision to strike down the 2008 allocations on a first-come-first-served basis as “unconstitutional” — was based on the reserve price that was fixed supposing that the companies would bid for the entire spectrum put on the block. 

Of the 176 blocks put on sale (each block of 1.25 Mhz), bids were received only for 101 blocks.

The auction for 2G spectrum ended with Vodafone bagging additional spectrum in 14 circles followed by Idea Cellular with seven circles.Among the new players Telenor and Videocon managed to win back spectrum in only six circles each.

The government was targetting Rs 28,000 crore from the sale of 2G spectrum in the GSM band but the Government has got just Rs 9,407 crore in total.   

Norway's Telnor and Videocon which had lost pan-India permits when the SC quashed all permits issued by former telecoms minister A Raja, won back their licences in 6 circles each, and will shell out Rs 2,222 crore and Rs 4,018 crore respectively.

Idea Cellular that lost operational permits in seven circles after the SC orders earlier this year has bagged airwaves in all these regions and has got one block of additional airwaves in Bihar.

Vodafone and Bharti Airtel won additional airwaves in 14 and one circle respectively.

 

 

Key circles of Delhi, Mumbai, Karnataka and Rajasthan did not get any bids.All other areas were sold at base price indicating that the auction got over without any bidding.

"We have sold 42.37% of the total airwaves that were put up for sale. There were no bids for Delhi, Mumbai, Karnataka and Rajasthan, and these four zones contribute 50% of the reserve price. The government will have to take some serious policy decisions, including whether the auctions should be re-run in these four circles with a lower reserve price," Telecom Secretary R Chandrasekhar told