WiMax auction bags government Rs38617 crore
11 Jun 2010
With the auction for wireless broadband access or 'WiMax' services ending today, finance minister Pranab Mukherjee should be laughing all the way to the bank.
The successful bidders have committed over Rs38,617 crore – which means the government has made Rs106,336 crore from its spectrum auction, over three times the original estimate.
After 16 days and 117 rounds, internet service provider Infotel emerged as the only pan-India winner for BWA spectrum by committing Rs12,872.52 crore.
Along with the BWA proceeds that the exchequer would get later this month, the Rs67,719 crore received from 3G spectrum winners would greatly help the government in managing its deficit and reduce borrowings.
In the union budget for the current year, Mukherjee had taken into account a mere Rs35,000 crore from sale of all spectrum.
In the BWA bidding, the government auctioned two slots of 20 MHz each. Apart from Infotel Broadband Services Pvt Ltd, US-based Qualcom bagged four circles - Delhi, Mumbai, Kerala and Haryana. Qualcom would have to pay Rs 4,912.54 crore.
Infotel emerged as the surprise package, provisionally winning a slot to offer broadband services in all the country's 22 service areas at a cost of Rs12,848 crore ($2.75 billion), the department of telecommunications said on its website.
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