'2G spectrum auction on Monday'
that allotment of permits in 2008 at 2001 prices caused loss to government exchequer to the tune of around Rs 1,76,000 crore.
Out of eight companies whose licences were cancelled, only three companies -- Idea Cellular, Videocon and Telenor (majority stakeholder in Uninor) -- have submitted bids for auction of airwaves frequencies.
These companies will have to win at least 5 Mhz of spectrum, divided in blocks of 1.25 Mhz each, to continue their services in areas where their licences were cancelled.
Telecom major Airtel and Vodafone are also participating in the auction to buy additional airwaves frequencies. These players can bid for maximum of two blocks in a telecom area.
Since there has been partial impact on permits of Idea Cellular, the company will need to bid for at least four blocks of spectrum, amounting to 5 Mhz of airwaves, in seven telecom circles to continue its operations.
These circles include Tamil Nadu (including Chennai), Kolkata, West Bengal, Orissa, Assam, North East and Jammu and Kashmir service areas. In rest of the circle, Idea Cellular can bid for maximum of 2 blocks only like Airtel and Vodafone.
Industry experts, however, are pessimistic over whether the auction can fetch government the Rs 40,000 crore target it seeks to achieve by selling spectrum.
"The government itself recognises that they are not going to get anywhere near Rs 40,000 crore, will be lucky if they get half of that amount, so we think that somewhere between Rs 19,000-20,000 crore might be the amount that the government will actually
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