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DoT’s New Policy to Permit International Telecom Firms to Bid for 3G License
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The long wait to enjoy blazing fast data speeds on mobile networks here in India seems to be finally coming to an end.
The Department of Telecom (DoT), today, finalized its policy which has opened the doors for international telecom companies to bid for a 3G license in India. The policy will allow some of the big international players to bid for some 3G spectrum which will enable them to start providing their services in one of the world’s fastest growing mobile markets, with over 277 million wireless subscribers as on May 2008, according to the Telecom Regulatory Authority of India (TRAI).
The consumers have long been awaiting the launch of 3G services in India. Even though a large portion of mobile services revenue comes from voice calls, the operators are positive that the penetration of 3G will be widespread. Currently, even with GPRS/EDGE, data services account to 12 percent of overall revenue. This move is expected to push companies to start their preparations to offer enhanced data services such as movie and game downloads over the mobile network along with enhanced voice features. A few of the existing providers like Airtel have already begun testing 3G services in select cities in India. Zee has already been suggesting 3G license for mobile TV. TRAI had recently suggested DoT to allow only existing providers to bid for the spectrum, which obviously, the DoT refused to consider.
With the finalization of the policy, the players will have to shell out double the amount for the reserve price as DoT has doubled the reserve price for auction recommended by TRAI in 2006 from around Rs 1,400 crores for an all-India licence. Also, the Adjusted Gross Revenue (AGR) goes up to 1 percent from the previous 0.5 percent. The policy is expected to fetch the government upto Rs. 52,000 crores.
The 3G issue has been long pending a decision and implementation. While the world has already been enjoying 3G services, some countries have already even begun testing 4G services. It would be interesting to see what future 3G services brings to India, specially when the country’s Prime Minister Manmohan Singh is said to have taken personal interest in the policy, according to afaqs.
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