Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
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.
David Bass
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