3G Auctions in December!!!

Its almost official- the auctioning of 3G spectrum for private telecom companies in India will take place on the 7th of December (fingers crossed).
The department of telecom after several discussions has come out with a tentative date for the much awaited auctioning. Let's hope this time the department holds on to its promise.
Of the 20MHz spectrum on sale there will be four blocks of spectrum for each circle. This coupled with high reserve price for the license has kept many of the companies away from the auctioning. US major AT&T which was the earliest to show interest in providing 3G services in India is very unlikely to participate because of the mammoth Rs.3000 crore reserve price that the company will have to pay in order to start the services.
Other private players on the other hand are happy enough to see a final date. Companies like Airtel, Vodafone and Idea will fight hard to get a block of the spectrum. The winners will have to pay their bid deposit amounts within five days of the closure of the auction and pay the balance after 15 days.
Government has also decided to hold a mock auction on 3rd and 4th October. The private players will be required to start the services before Deepawali next year.
BSNL and MTNL on the other hand continue to enjoy the head start. They will have to match the highest bid after the completion of the auctioning.