The first-ever auction of the radio frequency spectrum for third generation (3G) telephony that would facilitate high-speed mobile services in India began on Friday. 

The first-ever auction of the radio frequency spectrum for third generation (3G) telephony that would facilitate high-speed mobile services in India began on Friday. 

As many as nine telecom companies, Bharti Airtel, Reliance Communications, Vodafone Essar, Idea Cellular, Tata Teleservices, Aircel, Etisalat, S Tel and Videocon Telecommunications, are participating in the online auction process which will be held from 9 a.m. to 7.30 p.m. on all days, except Sundays and national holidays. 

Bharti Airtel, Reliance Communications, Vodafone Essar, Tata Teleservices, Idea Cellular and Aircel are bidding for all-India spectrum, while Videocon, S Tel and Etisalat are bidding only for selective circles. 

It is a simultaneous auction of 22 service areas over a secure website on the Internet. The auction has multiple rounds. During the e-auction, the telecom operators will have to match the base price, set at Rs.3,500 crore for one 3G slot by the government. 

The government is hoping to garner between Rs 30,000 crore and 35,000 crore by selling 3G airwaves and broadband wireless access (BWA) spectrum through auction that started today. There is, however, no time limit or deadline for the closing of the auction.

At each round, the price would be hiked from anywhere between 10-1 percent over the previous round’s price depending on the demand. Till 1.00 p.m., the first round of e-auction had been completed, according to TOI. 

The auction will end when demand is equal to the number of slots available in each service area. According to a senior DoT official, it is difficult to set a time-frame for the 3G bidding. “It may take even a month,” the official said.