As scheduled, the bidding process for the auction of the broadband wireless access (BWA) services got under way from 24th May, 2010. After its completion, the Indian Government is expected to earn a revenue of Rs.15,000 crore ($3.2 billion) from this auction.
"I expect the competition will be very high for BWA. As competitive as 3G, I am expecting Rs.15,000 crore from the BWA auction," Telecommunications Minister A. Raja said in Hyderabad on the sidelines of an international telcom conference.
BWA spectrum is essential for rolling out Worldwide Interoperability for Microwave Access (WiMAX) services enabling hand-held devices and laptops to access the Internet. It will allow the winner companies to offer high-speed Internet access as well as Internet telephony and television services. The spectrum can also be used for voice and high-speed data services.
As many as 11 companies, Bharti Airtel, Reliance WiMax, Idea Cellular, Aircel, Augere Mauritius Limited, Infotel Broadband Services, Qualcomm, Spice Internet Service Provider, Tata Communications Internet Services, Tikona Digital Networks and Vodafone Essar are participating in the BWA auction.
Global investment bank Rothschild and telecom auction services provider dot.econ are advising the Government on the auction. The BWA auction follows the recently concluded 3G auction, which has guaranteed the Government revenues of Rs.67,700 crore.
