Spectrum auction: Rs 40K crore target realistic

The government said its revenue targets of Rs 40,000 crore through the sale of spectrum are realistic and that it has enough spectrum from three sources that can be put up for auction in FY13.

The three sources in question are: the 700 MHz spectrum used by information and broadcasting Iamp;B,the excess 2G spectrum in the possession by the GSM operators,and the spectrum that has been freed on account of the cancellation of the 122 2G licences by the Supreme Court. From the spectrum used by Iamp;B,the government plans to release 88 MHz out of the 108 MHz that will be used for 4G services. The government plans to carry out auctions before March 2013.

The figures that we have given are in consultation with the Department of Telecom and what they have conveyed is in their view a realistic figure for the year, said R Gopalan,economic affairs secretary. There is an implicit price assumption based on what todays market position is and what they perceive as the value to the telecom services providers will be. We hope that the auction of the 122 licences also comes in and that will be a big jump, said Gopalan.