This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Qualcomm,Vodafone to Join India Wireless Auction

Auction Process

On Monday, May 10, day 26 of the auction, the anticipated revenue from 3G topped INR540 billion ($11.9 billion), nearly 50% higher than the base price of INR350 billion ($7.75 billion), for pan-India spectrum. The prices are set to increase further until telecom operators, one-by-one, decide to drop out from a particular circle.

Meanwhile the country's telecom minister Andimuthu Raja expects the government to earn INR500-550 billion ($11 -$12.2 billion) by selling 3G and BWA spectrum.

So far, the auction status indicates that six circles have excess demand, with Delhi and Mumbai attracting 35.6% of the total bid amount. In contrast, seven circles have on-par demand and nine circles have deficient demand.

The 3G auction includes nine qualified players, while the BWA auction has 12 qualified service providers. Aircel, Bharti Airtel, Idea Cellular, Reliance Telecom, Tata Teleservices, and Vodafone Essar qualified for both auctions.

Other players for 3G auction include Etisalat DB Telecom, S Tel Private, and Videocon Telecommunications. Other players for BWA auction include Augere (Mauritius), Infotel Broadban Services, Qualcomm, Spice Internet Service Provider, and Tikona Digital Networks.

The government has fixed INR35 billion as the reserve price for pan-India 3G auction, and INR17.5 billion for BWA. Auction for BWA will start after the completion of the 3G auction. Three or four blocks of 2x5MHz in the 2.1GHz band would be awarded through 3G auction, whereas two blocks of 20MHz in the 2.3GHz band would be awarded through BWA auction.

India entered the 3G mobile arena with the launch of mobile and data services by government-owned companies, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTE). In 2008, BSNL launched 3G services in Durgapur, an Indian city located near Kolkata. MTNL launched the services in Mumbai and Delhi. The government assigned 3G license to BSNL for operating in 380 cities by the end of March 2010.

Other Asian giant, China, started 3G mobile network coverage in 2008 as well. However the country entered a more advanced stage in comparison with India.

Stock quotes in this article: QCOM, VOD, CHL 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs