India makes billions from wireless auction

Jun 11, 2010, 13:50 GMT

New Delhi - India's auction of the wireless broadband spectrum ended on Friday, making the government nearly 8.6 billion dollars, a news report said.

The auction saw an unlisted company, Infotel Broadband Services Pvt, buying spectrum across the country while Aircel Ltd, majority-owned by Malaysia's Maxis Communications Bhd, was awarded spectrum in seven geographical areas, the IANS news agency reported.

Market leader Bharti Airtel Ltd and US chipmaker Qualcomm Inc were each successful in four areas.

Vodafone and Reliance Communications Ltd, ranked the country's number two and three telecom companies, did not win any spectrum.

A total of 11 firms participated in the auction spread over 16 days.

The government raked in 385 billion rupees (8.56 billion dollars) in fees, which with the 14.6 billion dollars from the recent third-generation spectrum auction could help ease the fiscal deficit.

The bids exceeded expectations, with analysts earlier predicting the 3G and broadband wireless access auction would fetch the government about 12 billion dollars.

Finance Minister Pranab Mukherjee, while presenting the annual budget in February, estimated the auctions would bring about 8 billion dollars.

The country had been geographically divided into 22 areas for the broadband wireless services, which enable high-speed internet telephony and TV services. It can also be used for voice and high-speed data services.