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Government doubles 3G reserve price
By siliconindia
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Saturday, 05 July 2008, 17:48 IST
New Delhi: Internet Service providers(ISPs) in India facing a tough time to move ahead with their future plans with the government of India's decision to double the reserve price for the 3G spectrum auctions.
This is because, the reserve price for the WiMAX (Worldwide Interoperability for Microwave Access) spectrum auction is likely to be set at fourth 3G spectrum price, reported The Economic Times.
The reserve price of pan-India WiMAX spectrum is expected to be over 
550 crore for an ISP company. Moreover the reserve price for a telco, who wants to bid for both WiMAX and 3G radio frequencies will be about 2,800 crore. This government's move would affect the ISPs plan of launching WiMAX services with telcos.
The Internet Service Providers Association of India( ISPAI) is going to approach the Telecom Regulatory Authority of India (TRAI) demanding that thier members be charged only 25 percent of the highest bid that a telco makes for for WiMAX spectrum in that particular circle during the auction.
Rajahs Charier, President, ISPAI,says "We will tell TRAI that in order to have a competitive market , standalone ISPs must be charged a maximum of 25 percent of the highest bid that a telco makes for WiMAX spectrum". "We will also seek that a few spectrum slots be reserved for ISPs during the WiMAX auction.This is perhaps the only way that the government can address the dismal broadband penetration in the country. ISPs will offer a much needed competition in the WiMAX space , without which they will not roll-out these services," he added.
According to sources The Department of Telecommunication(DoT) wants to restrict the launch of WiMAX to only three players, in which one of the slots is reserved for state owned BSNL/MTN. And not only that they will operate the service i n the 2.5 GHz frequency band. Sources say that this contradicts the recommendation of TRAI which had suggested that wireless broadband be rolled out in 3.3-3.4 GHz and 3.4-3.6 GHz. TRAI also recommends that up to 13 players be allocated spectrum to offer WiMAX services.
550 crore for an ISP company. Moreover the reserve price for a telco, who wants to bid for both WiMAX and 3G radio frequencies will be about 2,800 crore. This government's move would affect the ISPs plan of launching WiMAX services with telcos.
The Internet Service Providers Association of India( ISPAI) is going to approach the Telecom Regulatory Authority of India (TRAI) demanding that thier members be charged only 25 percent of the highest bid that a telco makes for for WiMAX spectrum in that particular circle during the auction.
Rajahs Charier, President, ISPAI,says "We will tell TRAI that in order to have a competitive market , standalone ISPs must be charged a maximum of 25 percent of the highest bid that a telco makes for WiMAX spectrum". "We will also seek that a few spectrum slots be reserved for ISPs during the WiMAX auction.This is perhaps the only way that the government can address the dismal broadband penetration in the country. ISPs will offer a much needed competition in the WiMAX space , without which they will not roll-out these services," he added.
According to sources The Department of Telecommunication(DoT) wants to restrict the launch of WiMAX to only three players, in which one of the slots is reserved for state owned BSNL/MTN. And not only that they will operate the service i n the 2.5 GHz frequency band. Sources say that this contradicts the recommendation of TRAI which had suggested that wireless broadband be rolled out in 3.3-3.4 GHz and 3.4-3.6 GHz. TRAI also recommends that up to 13 players be allocated spectrum to offer WiMAX services.
