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India to auction only three 3G licences
12 January 2010
The Indian government has cut from four to three the number of 3G licences that will be auctioned next month
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Comment: The main reason for the delay — and the reduction in the number of licences — is that the Indian government has been trying to get its army off the frequencies that will be allocated for 3G. The reduction in licences means that India will not achieve the licence revenue it hoped — though the cut may also push up prices.
The Indian government has dropped one licence from its much-delayed plans to auction 3G licences. Now only three new licences will be allocated, and the winning bidders will have to make their first payment within 15 days.
The three slots of 3G spectrum will be auctioned by India’s Department of Telecommunications for all 22 telecom regions — or circles.
One separate 3G licence has been retained for the state-owned companies BSNL and MTNL.
Successful bidders will have to offer details of technology they propose to deploy before rolling out commercial operations. They will also be needed to provide service in at least 90% of the service area within five years as part of the rollout obligations.
Some of the 3G spectrum being offered for auction is still in the process of being vacated. The successful bidders will be permitted to launch commercial operations using the spectrum from September 1 2010.
The auction process will be limited to three private GSM operators, while for CDMA operators the auctions will be limited to only one player per circle. No sale of airwaves will be held in Delhi, Mumbai, Andhra Pradesh, Rajasthan, Punjab and Maharashtra.
The auction — originally planned for 2008 — was due to be held this month, but will now begin on February 12. Prospective bidders have to submit details by January 25 and the government will announce pre-qualification of bidders on February 5, with a mock auction on February 9-10. GTB