Third time most definitely appears to be the charm for the auction, with two previous attempts at selling the licences in November 2012 and March 2013 both failing to reach even the lowest of estimates. This latest round of bidding however far exceeded the Indian government’s target of £1.8 billion.
The government stands to receive $3 billion initially, with companies required to pay up to a third of the winning price now, with the rest to follow by 2026. The money will be used to help shrink the country’s budget deficit.
Eight companies had applied to bid in the current auction for the 900 MHz and 1800 MHz band airwaves after the government sharply cut the minimum reserve prices. The winners included Bharti Airtel, Vodafone and Reliance Industries.
Bharti Airtel and Vodafone bought airwaves in the 900MHz band, worth about $3 billion each that were available in the key cities of Delhi, Mumbai and Calcutta.
