DoT invites bids from firms to conduct auction of 3G spectrum

NEW DELHI: Amidst its differences with the finance ministry, the Department of Telecom today started the process for 3G mobile services and invited bids from the 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 August 27 and will open the financial bids, of those who qualify technically and meet all the criteria for selection, on September 19 this year. 

According to the eligibility criteria, the bidder shall not have any equity directly or indirectly in any telecom or Internet service provider in India. Similarly, any telecom company or ISP shall not have any stake in the bidder company. 

DoT's decision to issue a RFP 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 week, 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) has also nominated its representative in the joint committee which would oversee the auctioning of radio frequency. 

Raja had said there would be no deviation in the schedule for auction of spectrum and rollout of services. 

The companies applying for conducting auctioning of spectrum need to be registered under the Indian Companies Act or a foreign company incorporated in a country outside India or a joint venture of such companies. 

DoT has, however, 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.