The Department of Telecommunications on Monday started the much-awaited process for allotting the third-generation spectrum by holding a pre-bid conference to select an online auction agency.

According to sources, various players specialising in e-auction like Deloitte, Metal Junction (it specialises in e-auctions for steel manufacturers and allied industries), Spiderboon Internet Service Pvt Ltd (an e-auction and e-tender service provider), N M Rothschild and Sons (investment banking and advisory firm) were represented.

The pre-bid auction was earlier scheduled for August 27. According to sources in the communications ministry, the prospective bidders had a "constructive" discussion with the Inter-ministerial Committee, which will oversee the proceedings of the auction.

"There were some clarifications and suggestions during the discussion, based on which the final request for proposal will be issued by Friday (September 12)," said a source.

The Inter-ministerial Committee is chaired by the member (finance) of the Telecom Commission, the policy-making arm of the DoT, and has seven other members, of whom four belong to the DoT.

"When the agency is selected by the end of September, the auctioneer, along with the DoT, will chalk out the design for the 3G and broadband wireless access auction," he added.

According to the criteria laid down by the government, the bidder should pay a non-refundable processing fee of Rs 50,000 and should have a paid-up equity of over Rs 10 crore.

Besides, the bidder and its substantial equity holders should have a combined net worth of at least Rs 25 crore.

After announcing the guidelines for the auction, the DoT had put up a notice for the RFP for selecting the agency for e-auction of spectrum for 3G and BWA in 22 telecom service areas.

The bids for the agency will be submitted on September 22 and the agency will be finalised by September 30.

Subsequently, the government will set a timeline for the auction of spectrum for 3G and BWA services.

The auction is expected to be completed by the year-end.