Sweeping off with only a little over Rs 9400 crores by the end of two days of auctioning for the 2G mobile services which was earlier expected to rake in Rs 40,000 crores for the exchequer, the government was disappointed by the measly figure it made at the end of the second day. Adding to the disparaging situation was that there were no takers for major circles like Delhi, Mumbai, Karnataka and Rajasthan.

The slowdown in the economy was evident with the way the auction progressed; without any vigor. By the end of the day there were only 96 bids for the 1.25 MHz for the 144 blocks with new operators like Telenor Videocon and Idea. As a consequence over 67% percent of the spectrum was usurped by the controversial telecom operators whose license would soon be canceled after the apex court passed the order.

In another 60 blocks the scenario was far worse as there were no bidders other than Bharti and Vodafone. Most other players had decided not to step in as the reserve bidding price was very high. Kapil Sibal however added that, despite the ministerial and cabinet decision, they finally had to go by the reserve price as quoted by the regulatory authority, TRAI which nailed the price at Rs 18,000 crores for the 5MHz band all over the nation.

By the end of two days 52% of the blocks remain unsold. Not only did the auction turn tables on the fiscal calculation of the center but also it pointed out to the downfall of the tele-communication sector.

(AW- Anil)