Processing .....please wait.. 
The article has been forwarded.... 
News >> Technology >>
3G bid details to be released on September 29
By siliconindia
|
Tuesday, 22 September 2009, 19:04 IST
Bangalore: The Department of Telecom (DoT) will release a detailed Information Memorandum (IM) for potential bidders of the upcoming 3G auctions on September 29, reports Economic Times.
The IM contains details regarding the billing schedule, qualifications of bidders, terms and conditions, payment schedules and other technical and commercial specifications through which the bidders can plan their auction strategy.
The DoT officials clarified that global telecom operators who do not have operations in India can participate, though they will have to acquire a Unified Access Service Licence (UASL) to be eligible to bid.
There are some uncertainties for potential foreign bidders. At present, a pan-India UASL costs 
1,658 crore and comes bundled with 4.4 MHz of 2G spectrum. The recent proposals to unbundle the license from spectrum and to change its cost are still pending and could remain unresolved at the time of 3G auctions.
This change is owing to a severe 2G spectrum crunch being faced in India with over 300 applicants waiting in queue for 24 months or more to get new spectrum or licenses. DoT officials say that global operators would like to join the queue, but with the given shortage, the uncertainties relating to the cost and 2G spectrum availability may prove to be a hindrance.
Any proposal to change the terms and conditions of license has to be referred to the Telecommunications Regulatory Authority of India (TRAI) and involves a detailed process including several consultations and open house sessions with all stakeholders.
Bharti Airtel, Vodafone, Reliance, Tata and Idea are expected to be the main players in the 3G auction. The Nordic telecom giant Telenor, which recently secured 67 percent equity in Unitech Wireless had said last week that it will not opt for a pan-India 3G license but will bid for a select few 3G circles. The new entrants like Aircel, Loop, Swan and Datacom are expected to bid for some strategic circles.
The reserve price for pan-India 3G spectrum is kept at 3,500 crore. It is considered that with limited number of slots, the government may be able to receive a price in the range of more than 6,000 crore for each of the slots giving an additional revenue of 25,000 crore to the exchequer for the current fiscal.
The Empowered Group of Ministers (EGoM) has recently approved placing four slots of 5 MHz each in the 2.1 GHz band for auctions in 3G. If the auction goes by the schedule, India will have four new 3G operators before 2010 end.
The 3G operators are expected to provide high speed data services to urban customers and use additional 3G spectrum as an overlay network to serve other areas where they face spectrum shortage. Rural India will have an increased access, even though the services will be confined to voice and SMS.
1,658 crore and comes bundled with 4.4 MHz of 2G spectrum. The recent proposals to unbundle the license from spectrum and to change its cost are still pending and could remain unresolved at the time of 3G auctions.
This change is owing to a severe 2G spectrum crunch being faced in India with over 300 applicants waiting in queue for 24 months or more to get new spectrum or licenses. DoT officials say that global operators would like to join the queue, but with the given shortage, the uncertainties relating to the cost and 2G spectrum availability may prove to be a hindrance.
Any proposal to change the terms and conditions of license has to be referred to the Telecommunications Regulatory Authority of India (TRAI) and involves a detailed process including several consultations and open house sessions with all stakeholders.
Bharti Airtel, Vodafone, Reliance, Tata and Idea are expected to be the main players in the 3G auction. The Nordic telecom giant Telenor, which recently secured 67 percent equity in Unitech Wireless had said last week that it will not opt for a pan-India 3G license but will bid for a select few 3G circles. The new entrants like Aircel, Loop, Swan and Datacom are expected to bid for some strategic circles.
The reserve price for pan-India 3G spectrum is kept at 3,500 crore. It is considered that with limited number of slots, the government may be able to receive a price in the range of more than 6,000 crore for each of the slots giving an additional revenue of 25,000 crore to the exchequer for the current fiscal.
The Empowered Group of Ministers (EGoM) has recently approved placing four slots of 5 MHz each in the 2.1 GHz band for auctions in 3G. If the auction goes by the schedule, India will have four new 3G operators before 2010 end.
The 3G operators are expected to provide high speed data services to urban customers and use additional 3G spectrum as an overlay network to serve other areas where they face spectrum shortage. Rural India will have an increased access, even though the services will be confined to voice and SMS.