The Telecom Ministry expects revenue from sale of 3G telephony spectrum to touch Rs 40,000 crore, beating the government's initial estimate of garnering Rs 35,000 crore from both 3G and Broadband spectrum.
The revenue from 3G (third generation) spectrum alone would touch Rs 40,000 crore. As of today, revenue (going by the bids) would cross Rs 35,000 crore, Telecom Minister A Raja said today.
He said both 3G and Broadband spectrum put together might bring in Rs 50,000-55,000 crore of revenue, much above the Rs 35,000 crore the government had estimated initially.
On the comparison being drawn in certain circles about revenues from sale of 2G spectrum and 3G, he shot back: "We can't compare PDS rice with Basmati rice."
The comparisons are "complete rubbish, complete nonsense". 2G services were for the common man and 3G is aimed at those requiring value-added services and hence, it was expected to rake in this level of revenue.
3G services will allow users to download and upload data on their mobile at higher speeds and stream movies online.
Asked about some analysts calling the price bids irrational, he said: "There is no ambiguity. It is only some frustrated forces who are not able to get it (spectrum) who are spreading this kind of information."
The auction of 3G spectrum began on April nine. Nine mobile operators are in the fray for the two slots of spectrum put on the block.