Gazing At The 3G Saga… Day In And Day Out!
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Dynamics of the Indian Communication Industry have been on a drastic revolution spree since last few months. Be it Price wars, MNP or 3G. Already pegged as the next big thing in Indian telephony, 3G seems to be the only rescuer of this slowly sinking ship. Each player in the current times has so much at stake just to acquire one out of the 4 slots earmarked for each circle.
3G in India has seen lots of action since the idea got conceived. We at WATBlog have always followed majority of the moves in this regard. And now, finally after a long delay in auction, and the different ministries in the union government coming to a final understanding, ‘The Indicative Itinerary’ for the spectrum allotment has been decided (subject to change according to future inter-ministry conflicts).
As we all know, since the very beginning it was decided to carry out the auction in four phases – Invitation Stage, Pre-qualification Stage, Auction Stage and Grant Stage. The central government however mentions that, there is no pre-set timetable and the government reserves the right to determine the overall timetable of the auctions or to amend it from time to time (or as we can say, subject to future inter-ministry conflicts).
The Time table is a cumulative product of the minds of EGoM (lead by Pranabda) & Sam Pitroda- advisor to the PM. Currently ‘The Indicative Itinerary’ goes something as follows:
- Deadline for submission of questions for pre-bid conference – November 13, 2009
- Pre-bid conference – November 16, 2009
- Issue of clarifications, if any – November 27, 2009
- Notice Inviting Applications – December 8, 2009
- Final date for Applications – December 21, 2009
- Publication of ownership details of Applicants – December 24, 2009
- Bidder Ownership compliance Certificate – January 4, 2009
- Pre-qualification of Bidders – January 7, 2009
- Mock Auction – January 11-12, 2009
- Start of the 800 MHz and BWA Auctions – Two days from the day of close of the 3G auction
- Payment of Bid Deposit by Successful Bidders – Within five calendar days of the close of the relevant auction
- Payment of the balance amount (Successful Bid Amount less Bid Deposit) – Within 15 calendar days of the close of the relevant auction
The Defence Ministry has also agreed to release 25MHz 3G spectrum before December 8 (refer Itinerary), so that 4 slots in each circle can be allotted quite easily. The additional spectrum vacated by the Armed Forces would mean four 3G slots for GSM players in Delhi, Uttar Pradesh (West) and Himachal Pradesh in line with all other circles; two GSM-based slots in Rajasthan and the North-East; and three in West Bengal.
But the ‘kahani-mein-twist’ is, even though the auctions will get over by January, the winners will be able to start using the spectrum only by June 2010 as the armed forces will require time to shift to the new infrastructure, alternative network being built by state-owned telcos Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd at a cost of almost Rs10,000 crore dedicated for the strategic defense of the nation.
Earlier this year, in May, both the defense and telecom ministries signed an MoU, where the Armed Forces had agreed to release up to 45MHz of spectrum over a three-year period, of which 25MHz is for 3G services, which will be the spectrum desperately required by the government.
The other foot
Sensing the arrival of 3G back to the forefront, the related industries have already started to search for opportunities. Take for example, the Mass Communication sector- Television News channels. NewsX and Star News have already chalked out their plans to start streaming of live news via 3G on mobile phones, after all, a child getting stuck in a hole can create waves across the country through television news channels, opportunities on something as handy as a mobile phone which is already having about a 40% penetration in India, can be explosive.
It can also be an alternate source of income for Mobile operators by having strategic tie ups with news channels, and sharing the revenues. This is just one example, so many other areas can be explored and trust me, in a digital world, and a ecstatically progressive, culturally diverse & geographically huge country like ours, 3G on mobiles can do wonders. Like you, even I’m desperately waiting for this wave to sweep us of our feet.
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