The government has finally unveiled the details of the upcoming 3G spectrum auctions and said that the online bids for bagging these airwaves will begin on January 16. The department of telecom (DoT), in its ‘information memorandum’ has also said that the auction of spectrum for Broadband Wireless Access (BWA), which supports technologies such as WiMax, will be held two days from the close of the 3G auctions.
WiMAX spectrum will be auctioned two days later from the close of 3G auctions. December 23 is the date for pre-bid conference while final date for submissions is on January 05. Names of eligible bidders will be disclosed on Jan 09 followed by mock auctions on Jan 12 & 13.
The government also came out with more clarity on spectrum available circle wise. Spectrum available in Mumbai can accommodate 4 players while Delhi has space only for 2. Gujarat and Himachal Pradesh have space to accommodate only 3 players as compared to majority of other circles where four players will offer 3G services. Rajasthan will have to wait as their lack of spectrum in the circle. The above is apart from BSNL and MTNL which will offer services in their respective circles of operations.
For WiMAX, three players will be able to fit in for all the 22 circles and the auction process will be four stage comprising of invitation stage, pre-qualification, biding and grant of spectrum.
The government’s ‘information memorandum’ has for the first time provided clarity on the quantum of spectrum available for 3G auctions. So while the spectrum crunch in Delhi will mean no more than 2 private GSM players can offer 3G services, Mumbai, India’s most lucrative telecom market will see at least 4 GSM players offering high end 3G services.
However, a foreign player entering the Indian telecom market as a 100% entity needs to find an Indian partner to hold a 26% stake in the joint venture before it launches commercial services. Further, in a bid to encourage foreign telcos to participate, the DoT has also said that mobile number portability would introduced soon.
MNP, which allows customers to retain their mobile numbers even as they switch operators will allow new entrants to lure some of the existing subscribers from the incumbents.
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