3G spectrum allocation – DoT allows New Players to Bid

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Contrary to TRAI’s recommendation of not allowing new players to bid for 3G spectrum, DoT has allowed new international telcos to bid for 3G spectrum.

Few excerpts:

  • New international telcos that are not operating in India will be permitted to bid for 3G licence
  • The reserve price for bidding has been nearly doubled from Rs 80 crore in Delhi and Mumbai, Rs 40 crore in Kolkata and Chennai and Rs 15 crore in other cities.
  • Allocation of 3G will be a standalone exercise and not an extension of 2G [source]

Data constitutes ~12% of operator’s revenue and the govt. will be able to generate ~10-12Bn$ annually from 3G services.

Given the political instability, it doesn’t seem very likely that govt. will bear the pain of convincing existing players to play fair and allow competition.

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