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India takes the EU route in 3G spectrum licenses
Sufia Tippu
Thursday, 28 September 2006 20:20
Page 2 of 2
The 3G spectrum would be available only for existing telecom operators like Bharti-Airtel, BSNL/MTNL, Hutch, Idea, Reliance and Tatas.
Interestingly, this is the first time that government-owned operators like MTNL and BSNL would also have to compete with the private players to carve out a share of the 3G spectrum space.
Overall, the government is expected to net up to $1.8 billion from the 3G spectrum. The highest bidder will get the clearest frequency channel, with the rest of the winners having to pay 75% of the highest bid.
This technology has found huge markets in Europe and Japan. In 2005, almost 40% of mobile users in Japan are reported to be on 3G technology. The advanced technology requires high-speed broadband which cannot be upgraded on the 2G networks.
Worldwide, governments have raked in huge funds by auctioning 3G spectrum. In Europe, the spectrum auctions yielded billions of euros.
India will not be very different. An operator seeking 3G spectrum on all-India basis will have to pay about $312 million.. There are up to six operators in most of the category circles. Even if only four players bid for 3G spectrum in a circle, then the government will collect a minimum of $1.2 billion.
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