The Indian government is expected to be able to auction off a single nationwide BWA/WiMAX license next year after it agreed in principle to accept back some of the unused spectrum held by BSNL.

Although the state-owned company is only due to surrender spectrum in nine of the country's 22 circles, the government has spectrum reserves that would enable it to sell off spectrum covering the entire country.

According to the Economic Times newspaper, the sale of one block of BWA spectrum could fetch about Rs 13,000 crore (US$2.4 billion) for the government.

BSNL is expected to receive a refund on the license fee for the spectrum it hands back in the region of 80% of the price it paid.

The company was awarded national license in advance of the main Bwa auction, but was required to match the license fees paid in the action. The cost of the license fee has been a drain on the loss making company ever since.