3G Auction prices are touching dizzying heights now, Day 20th of 3G auction saw swell in the frontrunners bid prices. The auction which started on 19th April, saw pan-India license price balloon over to Rs.10,347.67 crore, up close to 200% of the expected price of 3,500 crores.
3G Auction pricing – Day 20
The government’s provisional revenue from the sale stood at Rs.41,765.66 crore, much more than what it expected. Mumbai maintains the lead with provisional price of Rs 1,706.07 Crore followed by Delhi at Rs 1,653.87 Crore rupees.
Currently nine Indian telecom companies are participating in this 3G Auction – Bharti Airtel, Reliance Communications, Vodafone Essar, Idea Cellular, Tata Teleservices, Aircel, Etisalat, S Tel and Videocon Telecommunications
The 3G auction is currently in its last leg and is expected to be complete by this weekend.
Although, such high prices for 3G spectrum will help Indian Government to bring down the fiscal deficit, one also has to keep in mind that such high prices will force Telecom companies to increase the prices of 3G services offerings. So, in the end, it is us, the general mobile services users who will have to pay from our pockets.
See our previous coverage of 3G Auction.