The Department of Telecommunications (DoT) will kick start the process for 3G mobile services tomorrow as it holds pre-bid conference for both Indian and foreign companies to conduct the auctioning of spectrum in 22 telecom service areas.
Issuing the request for proposal (RFP), the DoT has convened a pre-bid conference on September 8 and will open the financial bids, of those who qualify technically and meet all the criteria for selection, on September 30 this year.
The eligible candidates would have to submit technical and financial bids by September 22.
As per the eligibility criteria, the bidder shall not have any equity directly or indirectly in any telecom or internet service providers (ISP) in India. Similarly, any telecom company or ISP shall not have any stake in the bidder company.
The DoT’s decision to hold pre-bid conference comes amid a tussle between ministries of finance and telecom over the guidelines of 3G mobile services and both have exchanged communications in this regard.
Last month, Communication and IT Minister A Raja had asserted that the Ministry of Finance was consulted on all the financial implications relating to 3G spectrum pricing and they (finance ministry) have also nominated its representative in the joint committee which would oversee the auctioning of radio frequency.
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Raja had said there would be “no deviation” in the schedule for auction of spectrum and roll out of services.
The companies applying for conducting auctioning of spectrum need to be registered under the Indian Companies Act or a foreign company in country outside India or a joint venture of such companies.
The DoT, however, has set a tough condition that the bidder company should have the experience of having conducted at least five e-auctions in the last three years and the total value of all e-auctions conducted should be at least Rs 2,500 crore.
The prospective bidders shall deposit a non-refundable processing fee of Rs 50,000 and the company must have a minimum paid up capital of Rs 10 crore and a networth of Rs 25 crore or equivalent on the date of application.
The DoT has set a target of starting 3G mobile services by early next year and in fact has already allotted the frequency to two PSUs — BSNL and MTNL — who have started the process of installing networks in their respective service areas.
The government is hoping to garner nearly Rs 40,000 crore from the auctioning of spectrum for 3G services among domestic players like Bharti Airtel, Vodafone, Idea and a host new mobile operators and also foreign players.