TRAI and DOT are determined to impose license fees for 3G spectrum. They have proposed three options – auction, beauty parade and fixed fees. Industry associations, COAI and AUSPI in their presentations didn’t want any fees as they have already paid a hefty entry fees. India has one of the highest tax and fee structure for telecos compared to China and other neighbors. Inspite of all these bottlenecks, we have winners like Bharti-Airtel making it to the top-10 technology companies in the world.
Due to heavy demand for GSM spectrum from unexpected quarters like HFCL and Reliance, the GSM lobby has requested to IT minister Dayanidhi Maran stating,
The spectrum needs of the existing GSM operators as per prevalent guidelines need to be safeguarded and taken care of.
In a separate development, DOT controlled, BSNL has declared that it will spend 80% of its recources and invest in expanding GSM based cellular services. Additionally, new entrants like Aircel and Idea will also want a slice of 3G, which may drive the license fees auction crazy 🙂