India Sets 3G Date ... Will it Hold?

The Indian government has, at long last, set a final date for the much-trumpeted, and much delayed, auction of licences to supply 3G mobile telephone services across the subcontinent. The federal government yesterday confirmed that the 9th of April is to be the red letter day when the bidding can finally take place. Two days after the 3G sale ends, the government will sell off licences to offer other broadband wireless services.

Applications are now being accepted by the Indian government from all prospective bidders. The deadline for submitting applications is March the 19th. Pre-qualified bidders will be announced on the 30th of March and mock auctions will be held on the 5th and 6th of April.

However, not everyone is convinced that the government will be able to sick to the new deadline. Some industry analysts point to the fact that the Ministry of Defence has yet to see the army actually vacate its spectrum, though it has promised to do so, once fibre-optic links are installed for it. In general, though the auctions are being welcomed as a boost to the already frighteningly competitive Indian mobile market.

For its part, the Cellular Operators Association of India, which represents over a dozen mobile companies gave the announcement a lukewarm reception saying it marked a "good beginning".

At the start of this week, Telecoms Minister Andimuthu Raja famously said "all the issues have been resolved." It remains to be seen whether he was speaking prematurely.