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3G in India: Auction Soon
Techtree News Staff, Aug 06, 2008 1335 hrs ISTWith the minimum price for a pan-India license set at Rs. 20 billion, many international and national telecom companies are expected to bid aggressively for the licenses, especially for metros like Mumbai and Delhi.
After the recent news about the increase in the 3G spectrum allocation, here's more dope to cheer up those waiting for 3G to reach Indian shores.
Although the exact date is not clear, it is rumored that the government is planning to hold the all-important auction for allocation of licenses for 3G sometime soon. We hope this happens soon as it's high time 3G services are launched here, especially since other countries have already started looking beyond 3G.
The minimum price for a pan-India license is set at Rs. 20 billion. As expected, many international and national telecom companies will bid aggressively for the licenses, especially for licenses for coveted metros like Mumbai and Delhi.
Andimuthu Raja, Communications and Information Technology Minister, said only two private operators, along with a state-owned firm, would get licenses for New Delhi, the capital, and Mumbai, the financial centre, because of the shortage of the spectrum there. Another pertinent point is that state-owned carriers MTNL and BSNL would have to pay an amount equal to the highest bid in the circles where they are granted slots.
Although this is good news for the consumer, the high-bidding prices for the licenses could hit mobile companies badly. India is a low-cost, high-volume market with very few users who will be able to take up the new 3G services. Although users in the cities may add up to a sizable number, it is still unclear as to how users in cities will accept the new services.
Source: Financial Times
Although the exact date is not clear, it is rumored that the government is planning to hold the all-important auction for allocation of licenses for 3G sometime soon. We hope this happens soon as it's high time 3G services are launched here, especially since other countries have already started looking beyond 3G.
The minimum price for a pan-India license is set at Rs. 20 billion. As expected, many international and national telecom companies will bid aggressively for the licenses, especially for licenses for coveted metros like Mumbai and Delhi.
Andimuthu Raja, Communications and Information Technology Minister, said only two private operators, along with a state-owned firm, would get licenses for New Delhi, the capital, and Mumbai, the financial centre, because of the shortage of the spectrum there. Another pertinent point is that state-owned carriers MTNL and BSNL would have to pay an amount equal to the highest bid in the circles where they are granted slots.
Although this is good news for the consumer, the high-bidding prices for the licenses could hit mobile companies badly. India is a low-cost, high-volume market with very few users who will be able to take up the new 3G services. Although users in the cities may add up to a sizable number, it is still unclear as to how users in cities will accept the new services.
Source: Financial Times
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