The Department of Telecommunications (DoT) has decided to allocate state-owned Bharat Sanchar Nigam Ltd (BSNL) with one block of 3G spectrum in each telecom service area, expect for Delhi and Mumbai. Mahanagar Telephone Nigam Ltd (MTNL), will be allocated one block each in Delhi and Mumbai.

To take its block, BSNL will have to pay a price equivalent to the highest bid in that particular service area. DoT has proposed guidelines for the bidding process of 3G spectrum. There will be a bidding process for each service area, and a reserve price will be set.

The reserve price for two 5MHz blocks of spectrum in Delhi, Mumbai and other areas categorised at par, will be  $37million (Rs160 crore). Whereas, the reserve price set for Kolkata and other areas at a par is $18.5million (Rs 80 crore). Area other than mentioned above, that fall in category ‘c’ will have a reserve price of  approx $7million (Rs30crore) reported the Business Standard.

The confirmed bidder will have to deposit 25% of the bid amount within 24hours and the balance amount within seven days. A failure to pay would mean a clear loss of money already deposited. X