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3G license auction draws criticism


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The 3 G auction licence ended on the 34th day of the bidding, with the government earning over a whopping Rs 67, 719 crore from the nine operators altogether, much above its expectations.

However, Bharti Airtel, India's largest mobile phone operator, had blamed the auction format and severe shortage of spectrum for the abnormal prices.

"We would like to point out that the auction format and severe spectrum shortage, along with ensuing policy uncertainty, drove the prices beyond reasonable levels. As a result, we could not achieve our objective of pan-India 3G footprint in this round," Bharti Airtel was quoted by Financial Times.

Kapil Dev Singh, strategic business advisor of technology market intelligence firm IDC India said, "The issue of quality of service must be taken up sooner or later."

He said it is important since "with the imminent advent of 3G services the India Telecoms industry is going to enter a new phase".

"This phase is expected to witness introduction of innovative services and heightened collaboration between Telecoms players, application developers, IT infrastructure providers, content providers and consumer products companies."

"The auction has not thrown up even a single pan-India player. This phenomenon needs to be watched in the medium term," he said.

Earlier Vodafone chief executive Vittorio Colao said the spectrum should not be seen as something that the government must use to squeeze money out of private capital.

Mobile spectrum is the radio waves over which voice and data information is sent and without which no calls can be made or internet accessed. It is owned by the government.

However, the government does not seem too worried as Finance Minister Pranab Mukherjee told a daily: "I calculated Rs 35,000 crore (revenue from 3G and Broadband Wireless spectrum sale) in the Budget. I'm getting Rs 67,000 crore, almost double. So, (I will get) that much elbow room."

Among the major bidders, Idea paid nearly Rs 5,765 cr for 11 circles, Bharti paid Rs 12,290 cr for 13 circles, Vodafone paid Rs 11,617 crore for 9 circle while Reliance Comunications paid Rs 8,583 crore for 13 circles.

No single carrier won spectrum up for pan India bid in all 22 circles but Delhi emerged the most valuable circle at Rs 3,317 crore. The national capital is followed by Mumbai at Rs 3,247 crore.

3 G technology facilitates downloading hi-speed data and stream videos on mobile telephones.




Read related articles: 3G in India    3G Cell Phones    3G Technology    


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Responses to "3G license auction draws criticism"
Author: Anish Nama    20 May 2010Member Level: Silver   Points : 0
very good information about #G technology in india..Nice


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