During the 3G and BWA auction in 2010, the government had
set targets and exceeded its expectations. During the auction the government
received more than Rs 1 lakh crore through auction. The interest of Reliance
Industries for bagging broadband wireless auction and 3G operators’ eagerness
to bag 3G spectrum forced several telecom players to pay high spectrum fees.
The current scenario is totally different. There are no
strong indications from existing operators and new entrants (who have lost
licenses after the recent Supreme Court verdict) to aggressively participate in
the November auction. Considering the current business condition, spectrum
auction will become a flop for the government which needs funds to meet its fiscal
targets.
Meanwhile, the Supreme Court extended the deadline for
spectrum auction from August 31, 2012 to January 11, 2013.
The operators, whose licences were cancelled by the court
order, will be allowed to offer services till January 18, 2013. This will
benefit Uninor, Videocon and MTS India.