The Indian government yesterday started allocating 3G spectrum to seven mobile operators, according to a release from the Department of Telecommunications (DoT). The operators include Vodafone Essar, Reliance Communication and Tata Teleservices, The…
The Indian government yesterday started allocating 3G spectrum to seven mobile operators, according to a release from the Department of Telecommunications (DoT).
The operators include Vodafone Essar, Reliance Communication and Tata Teleservices, The auction, which included 71 licences in 22 circles and closed in May, raised US$15bn for the government. The licensing rules allow telcos to roll out commercial 3G mobile from today until their licences expire, or for the next 20 years, whichever is earlier, stated the DoT.
None of the seven mobile phone operators won bandwidth in all 22 areas. Bharti and Reliance secured the most areas, with 13 each. S Tel won three areas.
“We are delighted to have received 3G spectrum for commercial use in nine telecom circles after the amendment in the UAS Licence,” said Tata Teleservices in a statement. “As announced earlier, we have already placed orders for 3G network equipment. We will now closely work with our partners NTT DoCoMo to put our network and content in place.”
But Aircel and Idea Cellular’s plans to roll out third 3G services in Chennai and Punjab respectively may be delayed due to technical issues with respect to licensing, explains the Business Line.
Last year, China, started offering 3G services. According to a recent Ernst & Young report, 3G licensing enables governments to stimulate new market competition, as operators gear up for price competition and new product strategies.
The report goes on to explain that given the pressure on margins created by this price war, consolidation between operators can be expected. “The highly competitive market also opens up opportunities for foreign companies to enter the lucrative market,” added E&Y.
With over 15 million customers extra every month in India, 3G is indeed expected to present significant revenue opportunities for operators in the country looking ahead.
