Union Telecom Minister A Raja today expressed optimism that the broadband wireless access (BWA) spectrum auctions, which kicked off today, will be as good as the 3G auctions and that he expects to mop up over Rs 15,000 crore from the process.
"We expect competition will be as high as that of 3G. We expect to get more than Rs 15,000 crore towards licence fee from the BWA auctions," Raja told newsmen on the sidelines of the World Telecommunication Development Conference here today.
The Centre made a a huge haul of Rs 67,719 crore from the recently concluded the 3G spectrum auctions against a target of Rs 35,000 crore.
The BWA spectrum facilitates worldwide interoperability for microwave access (WiMax) services, which in simple terms means wireless broadband services.
As many as 11 companies, including leading telcos like Bharti Airtel, RCom, Idea Cellular and the Tatas, are in the fray and the government fixed the base price as Rs 1,750 crore for a pan-India slot.
Defending the 2G auction, Raja said the 2G may not be used entirely for money making unlike 3G. "2G is like PDS rice while 3G is like the Basmati. The 2G has been churning Rs 15,000 crore annually to the government."
It may be mentioned that the the Opposition parties have been seeking Raja's resignation over his his alleged role in underselling the 2G spectrum for quite some time now. And now he is under tremendous pressure from telcos not to accept the recent Trai recommendations that suggested making operators pay for the excess 2G spectrum beyond 6.2 MHz on par with the current 3G prices.
He said no 3G bid winner approached the government seeking extension of the May 31 deadline to make the licence fee payment.
