TRAI and the telecom ministry together had put a hefty demand of $2Billion for all India 3G license. COAI represnting the GSM assoication have offered just Rs300 crores($66 Million) for all India 3G license.
Recall that the government wanetd to price the 3G spectrum on the European model of Telecom business. COAI reminds the government that European economies have 33% higher GDP than India and the latter is the cheapest telecom market in India.
“It is therefore submitted that if at all such a benchmark is to be contemplated, it should be adjusted downward based on the ratio of GDP per capita to make the pricing more relevant to the Indian market and environment. This would mean a price of around Rs 300 crore for All India MHz spectrum”, said a COAI letter.
The negotiations table is now split 4 ways as CDMA operators, Tata’s and Reliance are representing in their individual capacities. COAI representing the GSM lobby and the government presiding as the auctioner. Tata’s have offered Rs1500 crores for all India 3G spectrum license though it is not clear about how many MHz channels are requested. While Anil Ambani controlled Reliance Telecom has offered little over Rs1500 crores for all India 3G spectrum and now COAI with ridiculously low bid of just Rs300 crores for an all India footprint.
I had already termed the governments demand of Rs85crores /MHz of spectrum as “Insane” and I stand by it. Tata Indicom and Reliance Telecom are at one end of the spectrum while COAI and the government ar at the other extreme bands of spectrum ;-). Where will they converge to realize the convregnce dream of Indians ? Your thoughts.
Just confirmed that, Reliance is offering Rs150 crores for all the circles in Category A and not for individual circles of category A. So thus their total offering for PAN-India 3G license is as low as Rs300 crores.