DoT wants only four 3G firms for auction

Printer Print Email Email
Bangalore: In all likelihood, India will soon have only four private service providers for 3G (third-generation) mobile telephone. The Department of Telecommunication (DoT) has recommended to the Empowered Group of Ministers (EGoM) that only four blocks of 3G spectrum be put up for auction. The presentation made to this group of ministers said that that there wouldn’t be enough spectrum available for further expansion of services by 3G operators in case more than four blocks are auctioned. DoT has argued that there are five serious bidders for 3G spectrum. If five or more blocks are auctioned, the government will not get more than the reserve price. The current 2G services mainly support voice applications and there are only upto nine service providers in this area. 3G services enable high speed applications including broadband services on mobiles, video on demand and mobile TV. The finance and telecom ministers had earlier agreed to a reserve price of 4,040 crore per block of 2x5 megahertz, implying 16,160 crore revenue for the government from four blocks.