India plans global 3G spectrum auction
Sunday, 3 August 2008
NEW DELHI, Aug 2 (AFP): India said yesterday it plans a global auction for airwaves to offer high-speed third generation or 3G mobile phone services, a move seen reaping the government up to 10 billion dollars.
The long-awaited announcement is expected to improve service and spur even greater growth in the world's fastest-expanding mobile market, which has been adding eight million new subscribers monthly.
Communications Minister Andimuthu Raja said the licence auction would be held by December and promised the process would be "fully transparent."
With the mobile sales boom, scarce spectrum has become a sore issue with Indian cellular operators who are eager to get next- generation frequencies to ease airwave congestion in the country of over 1.1 billion people.
The government imposed a floor reserve price of 20.2 billion rupees or 480 million dollars for licences but bidding could go much higher, based on 3G auctions held elsewhere, for the 60 megahertz of spectrum up for grabs.
Leading Indian business lobby FICCI forecast the 3G policy would draw investments of eight to 10 billion dollars over the next two to three years.
Raja said he wanted "healthy competition" that would draw all players. The auction offers foreign firms, struggling with stagnant growth at home, a chance to enter the lucrative Indian market.
Five operators will be initially allowed for each telecommunications area, or circle, in all areas except for New Delhi and Mumbai, where two to three operators will be allowed, Raja said.
India is carved up into 22 telecommunications circles. The nation's two state-run firms, BSNL and MTNL, will get one allocation in each.
"The number of operators can go up to 10 in the circles... when more spectrum becomes available," Raja said, in a move boosting competition. -MORE
The release of spectrum for 3G mobile services puts India's mobile market on track for a new era of wireless telephony.
It brought praise from the industry and lifted shares of telecommunication companies as investors anticipated more business and higher revenues.
The 3G policy "is a fair and transparent way of allocating additional spectrum among the service providers," the global association of GSM operators GSMA and domestic lobby COAI said in a joint statement.
Shares of India's top cellular operator Bharti Airtel, expected to be one of the bidders, climbed 2.48 per cent or 19.85 rupees to 819 rupees, on the news.
The move will give mobile users access to high-end data applications on their phones, including high speed interactive gaming and Internet access, video conferencing, video streaming and other multi-media features.
"Quality of voice telephony will be improved" with 3G spectrum" that would allow companies to "provide good quality services to a larger number of subscribers," the government said in a statement.
It also spells big money for equipment makers as telecoms companies build 3G networks.
Leading telecoms seller Ericsson termed the 3G policy a next step in India's telecom revolution that "will help bridge the urban-rural digital divide and lead to penetration of broadband services in the country."
The long-awaited announcement is expected to improve service and spur even greater growth in the world's fastest-expanding mobile market, which has been adding eight million new subscribers monthly.
Communications Minister Andimuthu Raja said the licence auction would be held by December and promised the process would be "fully transparent."
With the mobile sales boom, scarce spectrum has become a sore issue with Indian cellular operators who are eager to get next- generation frequencies to ease airwave congestion in the country of over 1.1 billion people.
The government imposed a floor reserve price of 20.2 billion rupees or 480 million dollars for licences but bidding could go much higher, based on 3G auctions held elsewhere, for the 60 megahertz of spectrum up for grabs.
Leading Indian business lobby FICCI forecast the 3G policy would draw investments of eight to 10 billion dollars over the next two to three years.
Raja said he wanted "healthy competition" that would draw all players. The auction offers foreign firms, struggling with stagnant growth at home, a chance to enter the lucrative Indian market.
Five operators will be initially allowed for each telecommunications area, or circle, in all areas except for New Delhi and Mumbai, where two to three operators will be allowed, Raja said.
India is carved up into 22 telecommunications circles. The nation's two state-run firms, BSNL and MTNL, will get one allocation in each.
"The number of operators can go up to 10 in the circles... when more spectrum becomes available," Raja said, in a move boosting competition. -MORE
The release of spectrum for 3G mobile services puts India's mobile market on track for a new era of wireless telephony.
It brought praise from the industry and lifted shares of telecommunication companies as investors anticipated more business and higher revenues.
The 3G policy "is a fair and transparent way of allocating additional spectrum among the service providers," the global association of GSM operators GSMA and domestic lobby COAI said in a joint statement.
Shares of India's top cellular operator Bharti Airtel, expected to be one of the bidders, climbed 2.48 per cent or 19.85 rupees to 819 rupees, on the news.
The move will give mobile users access to high-end data applications on their phones, including high speed interactive gaming and Internet access, video conferencing, video streaming and other multi-media features.
"Quality of voice telephony will be improved" with 3G spectrum" that would allow companies to "provide good quality services to a larger number of subscribers," the government said in a statement.
It also spells big money for equipment makers as telecoms companies build 3G networks.
Leading telecoms seller Ericsson termed the 3G policy a next step in India's telecom revolution that "will help bridge the urban-rural digital divide and lead to penetration of broadband services in the country."