Govt Eyes Rs 45,000 Crore Revenue From 3G Auction, Says Raja

A. ajaThe administration expects to earn around Rs 45,000 crore from the ongoing auctions to award radio frequency spectrum for third generation (3G) telecom services and for introducing broadband wireless internet services.

Communications Minister A. Raja made the announcement on Tuesday.

On the sidelines of an event organised by an association of telecom operators, Raja said, "The auction of 3G and Broadband Wireless Access (BWA) spectrum put together is likely to fetch Rs. 44,000-45,000 crore for the government."

This figure is much higher than the Rs 35,000 crore predicted by the administration as proceeds from these auctions.

At the end of the ninth day of the auction, which started April 9, the provisional winning price for a pan-India license was Rs 6,354.23 crore as against from Rs 3,500 crore reserve price set by the administration.

BSNL, which had planned disinvestment of 10% of its equity stake, has been incapable to progress owing to stiff opposition from trade unions.

Recently, the Sam Pitroda group had recommended 30% disinvestment in the company and several other modifications comprising outsourcing of some services.

The employees unions continued strike Tuesday but called it off once they were promised by the minister that plans for disinvestment in the telecom company will be referred to a group of ministers (GoM).

"The GoM (Group of Ministers) will look into the recommendations made by the Sam Pitroda committee," Raja said, adding he had spoken to Prime Minister Manmohan Singh. (With Inputs from Agencies)