Yet More Delays for 3G in India ...

Confusion still surrounds the prolonged effort to sell off 3G licences in India. The latest move has seen the country's cabinet refer several pressing matters to a ministerial panel before a final sale of spectrum for the third generation mobile services can go ahead. However, the telecoms minister is reportedly still hopeful that the new panel will reach an early decision.

According to press reports, some of the issues that still have to be ironed out include finalising the number of service areas, or so-called "telecoms circles" that the competing companies will be allowed to bid in. The other, more pressing issue, appears to be how high the reserve price should be set. The Department of Telecommunications (DoT) has apparently put forward three options for consideration - keep the reserve price as it is, increase it slightly, or, more radically, double it for all concerned. Not surprisingly, perhaps, this last suggestion has the backing of India's finance ministry.

The latest development, however, means that the auction, which has already been put back three times, will now be delayed indefinitely. The DoT is yet to issue a schedule for the auction after it scrapped its latest deadline of January 30.