3G policy paves way for foreign players
Mobile users in India will finally have access to high-end data applications on their mobile, including high speed interactive gaming and internet access. Phone etiquette
By TNN |
NEW DELHI: Mobile users in India will finally have access to high-end data applications on their mobile, including high speed interactive gaming and internet access, video conferencing, video streaming and various other multi-media features.
The government on Monday unveiled the broad guidelines of its 3G policy. Telecom Minister A Raja announced that all the radio frequencies for offering third generation (3G) services, would be offered via an auction process, where all telcos — existing operators, licence holders and new international players — would all be allowed to bid.
Mr Raja also unveiled the guidelines for wireless broadband services (also called WiMax services) and said that this platform would help increase broadband penetration in the country.
Monday’s announcement marks a big change from sector regulator Trai’s recommendation that only existing operators be allowed to bid for 3G spectrum during the auction.
The new base price for 3G spectrum (where each operators gets 10 MHz is most likely to be Rs 160 crore ($40 million) for Delhi, Mumbai and other category ‘A’ circles; Rs 80 crore ($20 million) for Chennai, Kolkata and category ‘B’ circles; and Rs 30 crore ($7.5 million) for category ‘C’ circles—which add up to Rs 2,800 crore for an all-India licence. This is double that recommended by Trai because the regulator had only proposed that each player be granted 5 MHz.
“The 3G licences would be granted through a controlled, simultaneous ascending e-auction, by a specialised agency to ensure transparency in the selection process,” the DoT said in a statement. For WiMax services, too, a similar auction process will be followed, where players will be allocated 10 MHz spectrum in the 2.5 GHz band, where the base price is 25% of that for the 3G spectrum, the DoT statement added.
DoT secretary DS Mathur told reporters that in the first phase, about 30 MHz of 3G spectrum was available in the 2100 MHz frequency band, which could be allotted to 3 GSM players. ET had first reported that only three players would be allocated 3G spectrum of 10 MHz each and also that the base price for this would be doubled compared to the Trai recommendations. “In case we decide to allot 5 MHz per players, and not 10 MHz, then more than three players can be given 3G spectrum initially,” Mr Mathur added.
The policy also states that CDMA players will be allocated 3G spectrum in the 800 MHz band, but they would have to pay an amount proportionate to the highest bid for spectrum in the 2100 MHz band. The guidelines also stipulate that any player who bags 3G spectrum will not be allowed to merge with any other operator for five years, nor will telcos be allowed to resell or trade 3G spectrum.
Players offering 3G and WiMax services will also be subject to an additional spectrum charge of 0.5% of their total revenues, which will be increased to 1% after three years of allotment of 3G spectrum.
While CDMA operators did not comment on the 3G policy, GSM players said that the policy was at direct variation with the recommendations of Trai which had recommended that 3G spectrum be given only to existing operators in slots of 5 MHz each.
The government on Monday unveiled the broad guidelines of its 3G policy. Telecom Minister A Raja announced that all the radio frequencies for offering third generation (3G) services, would be offered via an auction process, where all telcos — existing operators, licence holders and new international players — would all be allowed to bid.
Mr Raja also unveiled the guidelines for wireless broadband services (also called WiMax services) and said that this platform would help increase broadband penetration in the country.
Monday’s announcement marks a big change from sector regulator Trai’s recommendation that only existing operators be allowed to bid for 3G spectrum during the auction.
The new base price for 3G spectrum (where each operators gets 10 MHz is most likely to be Rs 160 crore ($40 million) for Delhi, Mumbai and other category ‘A’ circles; Rs 80 crore ($20 million) for Chennai, Kolkata and category ‘B’ circles; and Rs 30 crore ($7.5 million) for category ‘C’ circles—which add up to Rs 2,800 crore for an all-India licence. This is double that recommended by Trai because the regulator had only proposed that each player be granted 5 MHz.
“The 3G licences would be granted through a controlled, simultaneous ascending e-auction, by a specialised agency to ensure transparency in the selection process,” the DoT said in a statement. For WiMax services, too, a similar auction process will be followed, where players will be allocated 10 MHz spectrum in the 2.5 GHz band, where the base price is 25% of that for the 3G spectrum, the DoT statement added.
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DoT secretary DS Mathur told reporters that in the first phase, about 30 MHz of 3G spectrum was available in the 2100 MHz frequency band, which could be allotted to 3 GSM players. ET had first reported that only three players would be allocated 3G spectrum of 10 MHz each and also that the base price for this would be doubled compared to the Trai recommendations. “In case we decide to allot 5 MHz per players, and not 10 MHz, then more than three players can be given 3G spectrum initially,” Mr Mathur added.
The policy also states that CDMA players will be allocated 3G spectrum in the 800 MHz band, but they would have to pay an amount proportionate to the highest bid for spectrum in the 2100 MHz band. The guidelines also stipulate that any player who bags 3G spectrum will not be allowed to merge with any other operator for five years, nor will telcos be allowed to resell or trade 3G spectrum.
Players offering 3G and WiMax services will also be subject to an additional spectrum charge of 0.5% of their total revenues, which will be increased to 1% after three years of allotment of 3G spectrum.
While CDMA operators did not comment on the 3G policy, GSM players said that the policy was at direct variation with the recommendations of Trai which had recommended that 3G spectrum be given only to existing operators in slots of 5 MHz each.
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