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The biggest ever aution of spectrum for mobile services starts in India

March 04, 2015. The auction of 2G and 3G spectrum to telecom operators in India is being initiated by Indian government. This is expected to be the largest spectrum auction so far and fetch the government of India close to INR 80,000 crore ( 1 crore = 10 million)

Government of India is in the process of auctioning 380.75 MHz of spectrum in three bands -- the premium 900 MHz band, 1800 MHz and 800 MHz, in addition to 5 Mhz in the 2100 Mhz band across 17 out of 22 telecom areas in the country.

The government hopes to get minimum of INR 17,555 crore at the minimum or auction start price for the 2,100 Mega-Hertz band or 3G spectrum . The reserve price for auction of 2G spectrum in 800 MHz, 900 Mhz and 1800 MHz bands is likely to fetch INR 64,840 crore for the government.

Most of the spectrum being put up for the auction is presently held by major telecom operators in India viz.Airtel, Vodafone, Idea Cellular and Reliance Telecom whose licenses are expiring in 2015-16. Mobile licenses for Idea Cellular's 9 circles, 6 circles of Airtel and 7 circles each of Vodafone and Reliance Telecom are coming up for renewal. It is mandatory for these companies to bid for spectrum if they have to continue offering mobile and other telecom services as their permit is expiring. The government had raked in Rs. 62,162 crore from the last spectrum auction during February 2014.
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