The Indian government has budgeted for the impending 3G auctions to deliver revenues of 350 billion Indian Rupees (US$7.26 billion) during the 2009-2010 financial year, reinforcing the now widely held belief that the reserve price for the auction will be raised.
Indeed, it would suggest that the finance ministry has got its way and the reserve price for each spectrum block will be doubled to INR40.4 billion ($838 million).
In the 2008-9 budget, into which the 3G auctions had originally been scheduled to fall, the government had valued the 3G licenses at INR200 billion ($4.13 billion). The 43 percent price hike is due to the finance ministry's belief that the spectrum is worth more, and thanks to more blocks being available after spectrum was released by the defense services.
