Global investing banking giant NM Rothschild has earned a handsome commission of Rs 30.5 crore from the government for a job well done on the auction of 3G and Broadband spectrum.
New Delhi: Global investing banking giant NM Rothschild has earned a handsome commission of Rs 30.5 crore from the government for a job well done on the auction of 3G and Broadband spectrum.
The government had committed 0.115 per cent of the difference of the final bid amount of the highest bidder and the reserve price as commission to Rothschild.
When contacted, a senior official in the Department of Telecom (DoT) confirmed the commission amount to Rothschild.
"The conduct of the auction was perfectly smooth with no implementation issues faced while the auction was going on.
This was a result of the meticulous planning and preparation done by the auction team before the start of the process," Telecom Secretary P J Thomas said.
The government had earned over Rs 67,700 crore from the sale of 3G spectrum and over Rs 38,500 crore from that of BWA.
Rothschild officials declined to comment on some leading operators' criticism of the process that, according to them, led to very irrational bids for both 3G as well as BWA spectrum.
This is for the first time that an e-auction was conducted in India for spectrum.
"This was the first time that an e-auction of such magnitude was conducted by the government and the experience has been very positive. Care was taken to ensure that all systems were in place and adequate multi-layered security features were incorporated in the auction system," Thomas said.
Rothschild had also conducted similar auction for spectrum in Hong Kong.