The best method for allocation of radio spectrum for commercial services is auction as it ensures high efficiency in terms of usage and revenue. India has also adopted auction method for allocation of spectrum for telecom services. Recently, three rounds of spectrum auction in 800 MHz, 900 MHz and 1800 MHz bands were conducted for 2G services in India. The paper presents an analysis of spectrum auction held in India and concluded that reserve price and market position would play a very crucial role in successful conduct of auction.