How much will the Indian government get from 3G and 4G auctions?

Indian government will get a whopping 106336 crore rupees ($22.7 billion) from the sale of airwaves (3G and 4G combined). Of this 67,715 crore rupees( $14.48 billion) is from 3G auction and 38,570 crores($8.25 billion) is from the sale of broadband wireless or 4G airwaves.

What does this mean to fiscal deficit?

When the fiscal deficit was estimated at 5.5 percent, the wireless wave auction monies was estimated at 35,000 crore rupees ($7.45 billion). But the bidding frenzy by the telcos has exceeded all expectations and tripled the total money to $22.7 billion. This would bring down the fiscal deficit to 4%. This is probably one estimation Indian government wouldn’t mind going wrong.

Who’s paying what? – Broadband Wireless Spectrum (BWA)

CirclesOperatorINR (Crores)USD (Billion)
22Infotel12856.77$2.74 billion
4Qualcomm4912.56$1.05 billion
5Tikona1058.2$226 .3 million
8Aircel3438.01$735.25 million
4Bharti3323.36$732.12 million
1Augere124.66$26.66 million
22BSNL+MTNL12856.77$2.74 billion
 Total38570.33$8.25 billion


BSNL and MTNL are the state operators which were granted spectrum outside the auction process in all 22 circles. But they would together pay the bid amount of 12856.77 crore rupees. This would take the total money for BSW to 38570.33 crore rupees( $8.25 billion).

A detailed circle-wise break-up :


Who’s paying what? – 3G

A total of 67722.95 crore rupees($14.46 billion) were generated from 3G auction which was spread across 7 private operators. BSNL and MTNL were given a free ride without auction in all 22 circles, but a full $3.58 billion were collected from them.

A detailed circle-wise break-up :

Contribution of each operator towards the windfall :

As they say a bumper offer for the Indian government and could probably be worth all those delays the wireless auctions have seen. Cash rich Reliance Industries has entered the telecom sector when every other telecom operator is strapped for cash after paying huge sums for the spectrum itself. What happens to the Indian telecom scene is a interesting watch.