2G spectrum: No bidders for Delhi, Mumbai for 1800 MHz

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The much-awaited auction for 2G spectrum that was freed following the cancellation of 122 telecom licences started at 0900 hrs on Monday. The government expects to raise around Rs. 40,000 crore through the auction. telecom secretary R. Chandrashekhar replied in the affirmative when asked if the auction started on time.

The auction has started for 1800 megahertz spectrum band -- currently being used for offering 2G GSM telecom services. There were no bidders for Delhi, Mumbai, Rajasthan and Karnataka circles during the auction of 2G spectrum for the 1800 MHz band. The bidding will go on till 7:30 pm.

Five telecom operators -- Bharti Airtel, Vodafone, Telenor-promoted Telewings, Videocon and Idea Cellular -- had applied for participating in the auctions.

"As per schedule, auction time is from 0900 hrs to 1930 hrs. Participating firms have been given an option to seek extension of auction rounds," consulting firm for auction, E-Procurement Technologies' Vice President Suraj Radhakrishnan said.

Bidders will have a total of 240 minutes of extension time to be used in the entire auction process, he added.

Radhakrishnan said there should be around six to seven rounds of auctions per day.

"First round time is from 9am to 10am but completion of round will depend on participating firm as they have option to extend time for rounds. Details will made public after auction time ends," he added.

The government is auctioning spectrum in 11 blocks having 1.25 Mhz frequency in all the circles, except in Delhi and Mumbai where there are only 8 blocks.

Out of 11 blocks in each circle, three blocks are reserved for new telecom players or operators whose 122 licences were quashed by the Supreme Court on February 2 in the 2G spectrum allocation scam case.

New players and telecom companies affected by the verdict will have to win at least 4 blocks to start or continue their operations.

Existing players whose licences were not affected by the Supreme Court order can bid for only two blocks. This applies to Airtel, Vodafone, and partially to Idea Cellular.