NEW DELHI: The auctions for 3G spectrum, vital for next-generation telecom services such as video-calling and broadband Internet on mobile phone
s, are set to be delayed beyond the scheduled date of January 16 and may take place in February, according to a top official in the communications ministry.
“The auctions have been delayed as the Cabinet is yet to approve some of the key proposals regarding the auctions,” the official, who asked not to be named, said.
However, industry executives said the auction may end up being deferred for a longer time. “If the auctions are delayed by more than a month, they may not happen during the UPA regime. This is because the code of conduct for the general elections will kick in from March 2009,” said a top executive with a telecom company that is looking to participate in the auctions for third generation or 3G, spectrum.
This executive, who asked not to be named and his company not be identified, also said he had received information from government officials on the auctions being deferred.
According to this executive, the primary reason behind the department of telecom’s (DoT) move to defer the auctions was the poor response to the 3G pre-bid conference on Tuesday by new firms, including foreign players.
While DoT has allowed foreign operators to participate in the 3G auctions, most international players have indicated that they are likely to give it a miss. Global operators have also pointed out that the auction guidelines have been structured to favour only existing Indian operators and have sought several changes to the country’s 3G policy.
Another possible reason could be that foreign players and some Indian companies such as Reliance Communications and Swan have sought additional time to study the information memorandum, which contains all details regarding the auction.
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