The much awaited 3G Spectrum auction is finally happening, almost smoothly except that potentially corrupt Telecom minister A.Raja is charged by the Office of Controller and Auditor General for causing a loss of over USD 5 bn to the Government. Anyway, after a careful study here is what Indian Wireless Operators may do with the 3G spectrum if they win in the auction,
- Aircel – Backed by Maxis, which has experience in providing 3G Data Services in Malaysia, may extend the concept to Urban Centers where there is tremendous demand for broadband. The company is not facing any crunch in 2G Spectrum to provide voice service.
- Bharti Airtel – One of the major hoarders of 2G Wireless Spectrum across India, still facing shortage as it adds subscribers. De-congestion and limited push on Data Services with pre-selected pockets
- Etisalat – Rumored to bundle cellular and broadband services [Can this really work ?]
- Idea Cellular – Freeing spectrum in incumbent circles and thrust on Data Services in others [ Company demanded the Prime Minister of India to come clear on 2G spectrum policy before auction, but in vain]
- Reliance Communications – Likely to bid aggressively for spectrum in incumbent circles where Reliance Telecom had established GSM services before launch of CDMA. Data push in other circles, though it can readily roll-out data services on EVDO [CDMA Network].
- S Tel – Not a serious bidder
- Tata DoCoMo – Backed by NTT DoCoMo one of the most experienced 3G service providers in the world plans for a Big Push on 3G Data Services. However, Tata’s are unclear of their broadband strategy with DSL, Cable, EVDO and WiMax in unregulated spectrum.
- Vodafone Essar India – Desperately in need of Spectrum for providing 2G Voice. Limited push on Data Services.
- Videocon Mobile – Not a serious bidder.
It is a Do or Die for Vodafone India and Idea Cellular to become an integrated Telecom Player in India or else they have to wait until Sam Pitroda forces BSNL to open their Copper Network or be content with MVNO kind of arrangement for data services.
What Operators Wished for before going for the 3G Spectrum Auction – Clarity on 2G Spectrum Allocation and Spectrum policy for M&A. But you see Politicians rule the country, mostly under loss – unlike Professionals, who manage a company mostly in profit 🙂