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3G Auction in India Rumbles Forward
(08 Sep 2008, BWCS Staff)India is poised to launch a huge new tender for 3G mobile licences in the subcontinent. The lengthy process of auctioning the radio frequencies is due to start today with a government briefing to would-be consultants hoping to run the electronic bidding war on behalf of the Department of Transport. Sources say the auction could raise as much as US$10 billion for state coffers.
State-run telcos Mahanagar Telephone Nigam Ltd (MTNL), which offers its services in Delhi and Mumbai, and Bharat Sanchar Nigam Ltd (BSNL) which operates in the rest of the country, have already been allotted frequency spectrum for 3G telephony. However, the two companies will be forced to pay the government amounts equal to the highest qualified bidder among the private players.
In accordance with the recent decision, an auction will also be held for 3G mobile phone providers who use the CDMA technology platform. The earlier plan was to allocate the scarce frequency spectrum on the basis of higher subscriber bases.
In preparation for the new licences BSNL today announced plans to float a tender for 93 million GSM lines, a contract that could be worth up to US$9 billion. Of the 93 million lines, 25% will be set aside for 3G telephony. BSNL is expected to start its roll out of 3G services in the northern and eastern zones by December of this year. Orders have already been placed to procure some of the equipment required for the roll out. BSNL said it hopes to receive the equipment from Ericsson by December.
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