3G auction to bring higher revenues for government

3G auction to bring higher revenues for governmentThe Indian government said today it desires to auction the spectrum for third generation mobile phone services at a time when it can earn aim to maximise its revenues share in the market.

Cabinet Secretary K M Chandrasekhar was quoted as saying that, "I don't think it really particularly matters if it happens this year or next year. DoT and Finance Ministry will take the decision based on how the revenue can be maximized."

For the current fiscal year, a provision of Rs 35,000 crore has been aimed from the sale of airwaves, which can further be used to partly cut down the fiscal deficit which is estimated to touch 6.8 per cent of the GDP in the year
2009-10.

The auction date will be set fixed aiming on how to maximise revenue from the current auction as the 3G issue has been resolved.

However, it did not specify the issues which have been resolved. The main reason for the 3G spectrum auction been halted has been primarily due to lack of consensus between the Finance and Telecom Ministries over the number of players to be allowed to offer 3G services in the Indian Markets.