Another Delay In 3G Spectrum Auction

In the earlier posts, we covered the delays in 3G auction due to conflicts between the Telecom Industry and the Finance Sector in fixing the Reserve Price  following which our finance minister Pranab Mukherjee formed an Empowered Group of Ministers for issues relating to the 3G spectrum auction.  Well,  here we are again.  A bad news for all the mobile users who were looking forward for the 3G services to be launched in India this year,  yet again.  The 3G services spectrum auction in India might take a little longer than expected and the spectrum that was indicated to be auctioned in the mid september will now take place early next year.

The government also confirmed the spectrums for the different states and the maximum radio waves spectrum allowed.

• All states except Rajasthan will avail the 3G services
• Himachal Pradesh gets a 5 MHz spectrum
• 4 southern states and Orissa gets a maximum of 60 MHz 3G spectrum
• All other states gets a spectrum range between 10 and 50 MHz

So, why is it delayed now?

The world is still fighting its way out of the Global recession and hence there might be several companies backing off or bid a lower amount. All in all, that’s what the government is afraid of.  Since, they are looking for a revenue of somewhere near Rs. 35000 crores, the Global recession might cut down their expected revenue.

Under such circumstances, when the Government is delaying the 3G spectrum auction, its going to be a long wait for the consumers, who wants to enjoy faster voice and data services, before the services roll out in the market. While other countries like America are looking forward with the 4G technology, India has still not surpassed the  3G barrier.

Looks like, the Government’s hunger for money might just as well come up with another delay next year saying, they would earn more if they wait a little longer as the growth in the different sectors have just started to increase. I guess there is nothing one can do but wait for the auction to be completed early next year. Hope it does this time.