Government is understood to have accepted a key demand from foreign telecom operators which were looking to participate in the forthcoming third generation (3G) auction. As per a proposal from the department of telecommunications (DoT), successful foreign bidders for the 3G spectrum would also be allowed to participate in the 2G space, a condition seen necessary for overseas newcomers to pitch strongly for the race.
On the part of government, the move would ensure that there is aggressive bidding in the auction, thus ensuring good revenue generation. The government had already fixed the maximum number of players at five per circle in order to keep the supply of the coveted radio frequency limited which would ensure a fierce competition between operators looking to get a pie of the 3G market.
DoT will be inviting bids for the coveted third generation (3G) radio frequency auction from October 26 to November 13. The auction for the GSM operators would be held on December 7 while that for the CDMA operators would take place couple of days later. If the government sticks with the calendar this time around, 3G services from the private operators may start in the first quarter of next year.
Nonetheless, the Empowered Group of Ministers (EGoM) constituted by the government to deliberate on various issue related to 3G
had cleared the differences between the finance and communication ministries and decided the final price for the GSM spectrum at Rs 3,500 crore, seen as a compromise between the two ministries
The Unanswered Questions:
Revised 2G Spectrum Policy – Where is the Bandwidth to accommodate Foreign Players ? Idea Cellular demands clarification on 2G policy, while Telecom Minister says it is a different issue 🙂
What India must simply do is, SERVE whatever is possible [Voice, EVDO Broadband, VoIP, Long Distance [ISD / STD], Data Centers, etc with your License [2G or 3G or BWA or UASL] and Spectrum should be auctioned. USO coffers should be filled with Revenue Sharing and Government monitor expansion to rural India in-line with its inclusive growth story 🙂