The DoT is planning to conduct 3G spectrum auctioning in two phases with the first one to start by 2008-end and the next after March, 2009.

The timing of the auctioning is relative to the timing of vacation of spectrum by Defence forces. For instance the first phase is timed based on the fact that Air Force is likely to vacate 30MHz spectrum by year-end. Also the alternative network being developed by BSNL for the Air Force is expected to be completed by year-end.

Similarly the Army and Navy are expected to vacate spectrum by March 2009 and hence the second phase of auctioning is timed around that time.

This development is likely to restrict the number of players who will actually bag 3G spectrum and thereby inflating the bids from the players.

Operators ideally seek a complete auctioning in a single phase after all the three armed services Air Force, Army and the Navy vacate their respective radio frequencies.