The auction of spectrum for 3G telephony gets delayed again as the law ministry has suggested the auction be done only after availability of spectrum, which would otherwise create legal complications. The auction process was earlier scheduled to begin on January 14, but got delayed due to uncertainty over the number of slots and unavailability of spectrum.

The ministry has advised that it is not prudent to auction airwaves not yet freed by the armed forces because under the terms of a telecom department proposal, the winning bidders can ask for their money back plus interest if they are not handed the 3G spectrum by the end of this year.

The auction pushed to August or September. If the process is completed before the end of the year in December, phone companies will be able to roll out 3G services only by the middle of next year. According to A Raja “It is between the law and finance ministries. There is no delay on our part. We had already decided on the dates for the auction process and finalised everything beforehand,”

Bharti Airtel was disappointed by 3G spectrum auction being postponed:

sunil mittal of airtel disappoint on 3G delay

“It has been going on for the last three years…We can do nothing until the government starts the auction. We are ready to participate in the auction,” Bharti Airtel Chairman and Managing Director Sunil Mittal told PTI.

Mittal, however, expressed satisfaction about the performance of Airtel in the last quarter and said “…last quarter was very satisfying. We grew by 10 billion minutes.  On the 3G spectrum auction, Mittal said, it was for the government now to take a decision on when to go for it as the industry has nothing to do.

3G services were originally scheduled to be launched in India in 2007 but have repeatedly delayed amid troubles over freeing up spectrum and setting bid prices. Whereas 3G was launched in Japan in May 2001, the services are available in over 90 countries including Pakistan