New Delhi: A total of 14 rounds of bidding were completed Tuesday at the end of day two of the second generation (2G) spectrum or airwaves auction that began Feb 3, an official statement said here.
The government received cumulative bids worth in excess of Rs.40,000 crore at the end of second day.
Eight mobile phone service providers are participating in the auction for 46 MHz in 900 MHz band and 385 MHz in 1,800 MHz band.
At the end of the second day of bidding, data released by the department of telecom showed that the 1,800 MHz band received bids in all 22 circles and the 900 MHz band received bids in all three circles which are up for auction.
Demand for Mumbai circle was the highest in 900 Mhz and highest demand for 1,800 MHz was from Uttar Pradesh (West) at the end of the 14th round.
Speaking to a news channel, Communications and IT Minister Kapil Sibal said: "Things are okay. We are seeing robust competition in Mumbai. We want to get enough revenue that will bring a big smile on the finance minister's face."
The eight mobile phone service providers participating in the auction are Reliance C1ommunications, Reliance Jio, Bharti Airtel, Vodafone, Telewings, Aircel, Tata Teleservices and Idea Cellular.
In the 900 MHz, Mumbai price shot up 68.3 percent more than the reserve price, Delhi went up by 50.4 percent and Kolkata by 54.2 percent. Number of blocks that are on offer in Mumbai is 16, Delhi 16 and Kolkata 14.
Bharti Airtel's 20-year licence is going to expire in Delhi and Kolkata circles and Vodafone India's 20-year licences in Delhi, Mumbai and Kolkata circles are getting over November this year.
The total spectrum on offer is 46 MHz in 900 MHz band (only Delhi, Mumbai and Kolkata) and 385 MHz in 1,800 MHz band (all 22 circles) simultaneously. The government targeted to mop up Rs.40,874.50 crore from spectrum auction in 2013-14.
The auctioning of the airwaves is done to obtain a market determined price of the spectrum. This auction does not have any last date. It will go on every week from Monday to Saturday from 9 a.m. to 7.30 p.m. till the time telecom service providers keep bidding.
The service providers will bid using fixed Internet Protocols (IP) as dynamic IP addresses are not allowed.
The objectives of the auctions are to obtain a market determined price of spectrum in 1,800 MHz and 900 MHz bands through a transparent process; ensure efficient use of spectrum and avoid hoarding; stimulate competition in the sector; promote rollout of the respective services and maximise revenue proceeds from the auctions within the set parameters.
Times Internet Limited and e-Procurement Technologies Limited are advising the government on the auction. Administration of the e-auction is the responsibility of e-Procurement Technologies Limited.