Govt Ready With 3g Norms

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Source - http://www.telegraphindia.com/1071112/asp/...ory_8538249.asp

Govt ready with 3G norms

New Delhi, Nov. 11: The government is likely to announce the spectrum policy for third-generation (3G) mobile services this week.

Guidelines for the policy have been finalised by the telecom ministry, which is favouring auctions to distribute the spectrum. Officials of the department of telecom (DoT) said, “Under the 3G policy, all telecom companies — existing operators, licence holders and new international players — will be allowed to bid for high-end 3G spectrum.”

They said the DoT was planning a special purpose vehicle to conduct the auction and might invite an international agency to set it up.

“In order to keep the entire process transparent and quick, the auction may take place online,” the officials said.

Issues relating to the pricing of spectrum are likely to be based on the recommendations of the Telecom Regulatory Authority of India.

In its recommendations, submitted to the government in September 2006, the regulator had proposed a base price of Rs 1,400 crore for a national 3G licence. Besides this, the base price for Mumbai, Delhi and Category A telecom circles is Rs 80 crore; Chennai, Calcutta and Category B circles, Rs 40 crore; and all other cities, Rs 15 crore.

3G mobile services support faster downloads and more data transmission, enabling operators to provide high-end services and broadband.

Existing mobile networks in the country are primarily for voice and SMS communication. They have limited data capabilities.

Auctions will also open the Indian market to some global telecom players. Companies such as AT&T and Verizon, who are down the pecking order for 2G licences, can bid for 3G spectrum and increase their chances of entry into one of the world’s fastest growing telecom markets.

Moreover, a 3G player has the technology for advanced voice, video and data applications, making it capable of providing voice and SMS services offered by 2G operators.

However, spectrum for 3G services is yet to be vacated by defence. In fact, the telecom authorities have missed many deadlines for the vacation of 3G spectrum, the first in March 2006.