It is reliably learnt from sources in the DoT that reserve price for 3G Spectrum auction is likely to be around Rs 2,260 crore for a PAN India license. Additionally, DoT is tying WiMax spectrum auction to 3G and has set a reserve price of fourth of the 3G reserve price i.e ~Rs 550 crore.

Independent ISPs complain that they cannot compete with deep pocket telcos in the auction who have multiple streams of revenue. These ISPs have written to the TRAI seeking intervention and asking it to recommend reserved slots for a separate auction thus preserving competition in the market.

However, going by the Government’s moves of not opening BSNL’s last mile network to other operators nor extending concessions for laying wired telephone network makes us skeptical on Government’s policy on broadband. Recall it has already made to shut some ISPs which was not really necessary.

Hey! small and independent ISPs, don’t be so desperate about Wimax Broadband Spectrum as Wimax 1.0 is a Box Office flop in India.