2G auction: Govt gets Rs 9,200 cr bids

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The government expects to raise around Rs 40,000 crore through the auction.  (Reuters) The government expects to raise around Rs 40,000 crore through the auction. (Reuters)
SummaryThe government expects to raise around Rs 40,000 crore through the auction.

received bids for half of the 8 blocks of spectrum available for bidding.

Himachal Pradesh, Kerala and Punjab received bids for only one block clearly indicating that companies whose licences were affected by Supreme Court judgement, Telenor promoted Telewings and Videocon, did not bid in these circles.

The demand for spectrum in UP (W)and (E) has kept auction going as per the details shared.

Sources said the auction has drawn scant interest so far as the base price for 5 MHz of GSM radiowaves or spectrum in all the 22 zones is more than seven times of what the companies paid in 2008.

Chairman of Bharti Airtel, the nation's largest telecom company, Sunil Bharti Mittal had last week predicted that the auction would be over on first day itself because of the high base price.

Bharti Airtel, Vodafone, Idea Cellular, Norway's Telenor and Videocon are bidding for GSM, but there are no bidders for the CDMA spectrum after Tata Teleservcies and Videocon pulled out of the race.

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Muted response to spectrum auction due to high price: COAI

Holding high reserve price responsible for the muted response to the 2G telecom spectrum auction, Cellular Operators Association of India (COAI) today said it would be surprising if the process went on for more than a day or two.

"The limited amount of spectrum, contrary in our opinion to the Supreme Court ruling, was guaranteed to have a very detrimental impact on the auction.

"We said the high reserve price would ensure that limited players come into the bid, indicated extremely muted bidding and that there would be several circles that would have no bidders," COAI General Secretary RS Mathews said.

That is exactly what we are seeing now, he said, adding that "he would be surprised if it would go on more more than a day or two".

The government today received bids worth more than Rs 9,200 crore on the opening day of an auction of 2G mobile phone spectrum, drawing scant interest.

Of the 22 telecom circles, in which India has been divided, bids were received for 18 circles, with Delhi, Mumbai, Rajasthan and Karnataka, which had the highest base price, drawing blank.

The auction that opened at 0900 hours, will have six rounds of bidding today.

Sources said the auction has drawn scant interest so far as the base price for 5 MHz of

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