AUSPI asks govt not to collect than 10% of 3G bid money

The Association of Unified Telecom Service Providers of India (AUSPI), the CDMA operators group, today requested the government not to collect more than 10 per cent of the bid amount from successful bidders of the 3G spectrum auction at once.

"Since the spectrum is not being made available immediately after auctioning, not more than 10 per cent of bid amount may be collected from the successful bidders after the 3G auction. It is requested that the terms and conditions of payment may kindly be revised," the CDMA operators association AUSPI said in a letter to the finance ministry.

However, to securitise the government, the successful bidders may be asked to furnish bank guarantees for the balance 90 per cent of the bid amount for the period till the spectrum is allotted to all the three successful bidders, it said.

AUSPI said as spectrum is likely to be available only at a later date, it would be just and fair for such an arrangement.

The government has announced that the spectrum will be allotted only in August 2010.