Updated: 3G Auction completed after 34 days of bidding

[vmsanghrajka 0]

Forget by June 09.. We wont even be started by then.. Grean Indian Spectrum Tamasha.. lol

[KumaarShah 143]

What happened to the old dates of April end and year end? Of course the years were not mentioned at all.

It appears that the GSM gangsters have greased the TRAI babus very well to delay the implementation of MNP.

[raccoon 53]

Why only "GSM gangsters"? I'm sure RIM will also loose hordes of customers if MNP comes in... so they have their vested intrests too ...probably even more so, dont they??

[Honest 836]

^^^

Yes my dear friends, Kumaar and Raccoon are 100% correct. No Indian Operator wants MNP to be started in India.

Regards.

[Dj 25]

i have a feeling it will begin '09... no reasons more than its being the next step forward... it would still be a level playing field... someone's loss would be someone else's profit and vice versa... but yes what the operators would stand to loose are some captive clients which are trapped for not being able to loose their numbers...

apart from this i think the entire operator pack is out for your money... u choose not based on who's good but on the one skimming your the least without being unbearable...

[Arun 795]

TRAIs Press Release regarding MNP (released on April 11, 2008): http://www.trai.gov.in/trai/upload/PressRe...april08no34.pdf

TRAI Letter to Secratary of DoT: http://www.trai.gov.in/trai/upload/PressRe...6/letterDoT.pdf

[Dj 25]

more proof to support my post above... thx Arun !

[kesav 127]

1) BSNL, MTNL may get 3G spectrum priority

2) BSNL has been allocated 2G CDMA spectrum in all circles.

3) BSNL has been allocated 3G EvDO spectrum in Kerala Circle. :clap:

Kerala becomes the first circle to get into 3G. :clap:

points 2 & 3 can be inferred from last paragraph

State-owned firms will have to match price paid by pvt players.

The Department of Telecommunications (DoT) is considering a proposal to allocate spectrum, the radio frequencies that enable wireless communications, for third-generation or 3G services to state-owned Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) ahead of other operators.

The move is expected to frustrate private players since this will give BSNL and MTNL a head-start in rolling out high-value 3G services that offer video calls, music downloads and games.

The proposal to consider priority allocation is significant because the government had accepted the Telecom Regulatory Authority of India (Trai) recommendations late last year to allot five players 5 MHz of spectrum each for 3G services on the basis of an e-auction.

The state-owned corporations will, however, have to match the price of the highest bidder for this preferential allocation.

BSNL, which operates all-India telecom services, and MTNL, which operates in Delhi and Mumbai, had sought spectrum for 3G services on priority. A meeting in early April between DoT officials and top executives of the two state-owned companies reportedly assured them of this.

“We have been assured by the government that BSNL will be given priority in allocation of spectrum,” a senior official of BSNL said.

MTNL and BSNL will be provided 5 MHz spectrum each in the 2.1 GHz band. DoT has also assigned frequency for indoor demonstration of 3G services under 2.1 GHz in certain circles, they added.

DoT, which also allocates telecom licences, is currently waiting for the defence services to free up 3G spectrum, which is due towards the end of this year.

Last year, the government had allocated additional spectrum in 2G or the current generation of services on priority to the state-owned corporations even as requests by private players for additional allocation of spectrum based on higher subscriber numbers were stuck for several months.

Private players led by the Cellular Operators Association of India have, in fact, protested against the special treatment meted out to state-owned companies in the allocation of additional spectrum.

In a separate development, BSNL has also been assigned 2G CDMA spectrum across all 23 circles in the country. In the Kerala circle, the company has been assigned 3.75 MHz, while for the rest of the country the DoT has allocated 2.5 MHz (equivalent of 4.4 MHz in GSM).

source :: http://www.business-standard.com/common/ne...20003&tab=r

[kesav 127]

DoT spells out 3G auction procedure

New Delhi, April 14 The Department of Telecom may give preference to existing mobile operators, including Bharti Airtel and Vodafone, in case of a tie during the auction process for third generation mobile services.

The number of subscribers and annual revenues are the other two tie-breakers identified by the DoT, if more than two companies end up quoting the same price during the bidding process.

“If there is a tie between bidders and one such bidder happens to be an existing service provider in the concerned area, the existing operator should be permitted to participate in the next round as the existing one will be able to roll out network faster,” DoT said in its draft guidelines.

In case the tie is between two existing operators, then the company with higher subscriber base will be allowed to go to the next round of bidding. If the two operators have similar subscriber base, then the company with higher annual revenues will go to the next round.

The auction will take place online for 5 Mhz in each circle. The lowest bidder in each round will be eliminated. Once the number of bidders remaining is equal to the number of spectrum blocks available in the service area, the auction will close. All the companies who win the bidding will have to match the amount quoted by the highest bidder.

Every bidder will have to deposit an earnest money guarantee per block of spectrum, which is 25 per cent of the reserve price fixed by DoT. Winning bidders will have to pay 25 per cent of the bid amount immediately and the balance within 7 days. In order to give every bidder a chance to get a feel of the bidding process and the value of spectrum, all the companies participating in the auction will be taken automatically to the second round without any elimination.

DoT had earlier announced that 3G auction will be open to both new and existing licence holders. Companies without a licence can pay Rs 1,650 crore and acquire a unified licence, specifically for taking part in the bidding process.

Tie-Breakers are in the following order

1)existing service provider in the service area concerned

2) company with higher subscriber base

3) company with higher annual revenue

source :: http://www.thehindubusinessline.com/2008/0...41551620400.htm

[vishalsheth 19]

Is 3G really coming in or it's yet the talks. Any idea of Reliance with 3G? It would be fun to get a new device only if there's 3G. Why waste money now?

[srk006 21]

The implementation of the Mobile Number Portability (MNP) in India will be delayed if state-owned telcos BSNL and MTNL don’t significantly upgrade their networks.

Source: http://economictimes.indiatimes.com/BSNL_M...how/2954755.cms

Is this a sign of another delay in the implementation of MNP?

[vishalkumar 0]

^^^

How long to wait guys? Will it start atleast by '09???

[coolrajiv 1]

The Telecom Regulatory Authority of India (TRAI) has approved the pan-India implementation of Mobile Number Portability (MNP), and requested the Department of Telecom (DoT) to select an operator who will be licensed for providing and operating end-to-end MNP solutions in the country.

Further, TRAI has recommended that the 'Mobile Number Portability Clearing House Administrator' (MCHA) should select a neutral third party operator through a competitive bidding process. If all goes well, MNP will be implemented country wide by June 2009 in phases, with the first phase covering metros, as per TRAI recommendations.

With this, India will soon join the elite club comprising USA, UK, Australia, Korea, Japan, Canada, most of Europe, and Pakistan, who already offer number portability.

And when effective, those planning on using MNP, here's something you ought to know. In case of pre-paid mobile subscribers porting the mobile number having balance amount, no credit transfer will be allowed to the new account. Subscribers will have to either consume the balance amount or forgo it. Also, there will be a 'break before make' arrangement for completion of porting process i.e. connection from donor network to be disconnected first, and then connection with recipient network to be made. However, TRAI has asked to keep the break period not more than two hours.

According to some surveys, as many as half of the country's mobile phone users are unhappy with their service providers, and hence willing to switch operators if allowed to retain their existing numbers.

[Dj 25]

^^^

beginning to seem like a distant dream...

[kesav 127]

DoT plans two-phase 3G spectrum auctioning by year-end

The DoT is planning to conduct 3G spectrum auctioning in two phases with the first one to start by 2008-end and the next after March, 2009.

The timing of the auctioning is relative to the timing of vacation of spectrum by Defence forces. For instance the first phase is timed based on the fact that Air Force is likely to vacate 30MHz spectrum by year-end. Also the alternative network being developed by BSNL for the Air Force is expected to be completed by year-end.

Similarly the Army and Navy are expected to vacate spectrum by March 2009 and hence the second phase of auctioning is timed around that time.

This development is likely to restrict the number of players who will actually bag 3G spectrum and thereby inflating the bids from the players.

Operators ideally seek a complete auctioning in a single phase after all the three armed services Air Force, Army and the Navy vacate their respective radio frequencies.

source :: http://www.telecomtiger.com/fullstory.aspx...mp;storyid=1613

[kesav 127]

No license fee for fixed line telephones in couple of months

Government awaiting clarifications from regulator on 3g spectrum

The Govt on Friday said the fixed line telephony would be exempted from the license fee to encourage service providers especially in the private sector to go to rural areas.

"I have already asked the Telecom Commission to deliberate on the issue to exempt fixed line telephony from license fee, charged as percentage of Adjusted Gross Revenue (AGR)," Telecom Minister A Raja said at a function organised by Cellular Operators Association of India (COAI).

Despite a teledensity of nearly 25 per cent, 70 per cent of the population does not enjoy the fruits of telecom revolution, he said adding, "I call upon all the stakeholders (PSUs and private operators) to come forward and connect all the villages."

On behalf of the Government, "I assure you all the help to go to rural areas." State-run BSNL would be the single largest beneficiary of Raja's announcement as the PSU was having nearly 90 per cent of the fixed line telephone connections but India's largest private operator Bharti Airtel welcomed the decision saying that “fixed line telephony needs encouragement and it should not be burdened by taxes."

Commenting on the decision, Sunil Mittal of Bharti Airtel told reporters, "I am delighted. Fixed line telephony must become recipient of funds and the operators should not be burdened with a host of levies like license fee of contribution to the Universal Service Obligation (USO) Fund."

With a view to give further impetus to rural telephony, Raja said beginning of next generation 3G mobile services would provide much required help as this has a potential of a far higher voice capacity as well as high speed data communication compared to existing 2G services. For urban India 3G would offer the convenience of mobility with the rich multimedia of the Internet but "it is in rural India that I hope to see 3G making an invaluable contribution.

"The higher voice capacity of 3G spectrum will also make it possible to offer far more affordable voice services, which will encourage more rural users to take up services," the minister said.

On the allocation of 3G spectrum, Raja said the Department of Telecom (DoT) has sent back the recommendations to telecom regulator TRAI for some clarifications and as soon as they come back, the Government would come out with guidelines.

source :: http://www.financialexpress.com/news/No-li...es-Govt/301579/

That's a great news for fixed-line operators.

I would like to remind that Govt. earlier during March has removed the land-line revenue for spectrum charge calculation.

If this proposal(no license fee) is also implemented it would be a double bonanza.

Hope fixed-line operators will pass on the benefit to end-customers.

I would also like to remind Govt. and ppl that previous benefit of removal of spectrum charge on landline revenue was not passed onto customers.

[@ksh@T 20]

NEW DELHI: The government said on Friday that the fixed line telephony will be exempted from the license fee to encourage service providers especially in the private sector to go to rural areas.

"I have already asked the Telecom Commission to deliberate on the issue to exempt fixed line telephony from license fee, charged as percentage of Adjusted Gross Revenue (AGR)," Telecom Minister A Raja said at a function organised by Cellular Operators Association of India (COAI).

Despite a teledensity of nearly 25 per cent, 70 per cent of the population does not enjoy the fruits of telecom revolution, he said adding, "I call upon all the stakeholders (PSUs and private operators) to come forward and connect all the villages."

On behalf of the government, "I assure you all the help to go to rural areas."

State-run BSNL would be the single largest beneficiary of Raja's announcement as the PSU was having nearly 90 per cent of the fixed line telephone connections but India's largest private operator Bharti Airtel welcomed the decision saying "fixed line telephony needs encouragement and it should not be burdened by taxes."

Commenting on the decision, Sunil Mittal of Bharti Airtel told reporters, "I am delighted. Fixed line telephony must become recipient of funds and the operators should not be burdened with a host of levies like license fee of contribution to the Universal Service Obligation (USO) Fund."

BSNL gets Rs 1,200 cr bonanza with removal of license fee

NEW DELHI: State-owned Bharat Sanchar Nigam Limited will get financial benefit of about Rs 1,200 crore annually with the exemption of license fee on fixed line telephony. BSNL has annual revenue of about Rs 15,000 crore annually from its fixed line operations and the PSU pays on an average 8-9 per cent of Adjusted Gross Revenue (AGR) as license fee to the government.

"In fact, BSNL has contributed much more in the Universal Service Obligation (USO) Fund instead of getting subsidy from the government for the fixed line operations," BSNL CMD Kuldip Goyal told PTI. Now things are getting corrected. "I am really happy with the announcement of our minister A Raja. Exempting fixed line services from the AGR's purview, our rural expansion plans and also in other parts of the country would get a major boost," Goyal said.

BSNL's financial viability had taken a major hit after the removal of subsidy in terms of Access Deficit Charge, a levy paid by private players to the PSU to carry out rural operations. The PSU was getting the ADC to the tune of Rs 5,000 crore annually till about two years ago from private players but now it has been completely waived with effect from April this year.

BSNL is fulfilling various social obligations of the government and has to operate in loss making rural areas, the officials said adding the PSU received only Rs 4,650 crore from the USO fund during 2002-06, while it contributed Rs 8,031 crore towards it. This was a distortion in the policy and has been corrected with the minister's decision to exempt fixed line telephony from license fee.

[kesav 127]

TRAI rejects DoT's proposal on foreign players' entry in 3G

http://www.trai.gov.in/trai/upload/PressRe...25apr08no44.pdf

Another great Indian Dhamasa has started...............

:Contento:

[kesav 127]

Talks on defence spectrum to end in a month

Mobile operators' long wait to roll out advanced broadband services may end within a month, with Telecom Minister A Raja today exuding confidence that talks with defence ministry for release of spectrum for 3G mobile services is expected to yield positive results.

�The matter is being discussed with GoM chairman... Already, National Security Advisor is dealing with all these issues... (and) is interacting with defence officials... I hope that within a month some outcome is expected...," he told reporters on the sidelines of a 3G seminar.

Besides, the Department of Telecom (DoT) is also awaiting clarification from regulator Trai related to 3G recommendations made by it.

Raja promised speedy roll out of 3G as soon as the clarifications sought from Trai is received. The final guidelines are expected to be released by April. Government has already issued broad guidelines for rolling out 3G services.

Every effort is being made to get the spectrum vacated and coordinated for commercial use, but it may take time and may become available only in phases, he added.

Defence is expected to release 45 Mhz of spectrum once an alternative network is ready for it. Out of the 45 Mhz, 25 Mhz would be kept for 3G services.

Speaking at a seminar on "3G mobile broadband for all," he said DoT had already announced the broad guidelines on 3G. These guidelines refer to the auction and allotment of spectrum for 3G services

source :: http://www.business-standard.com/common/st...mp;autono=36314

[kesav 127]

DoT firm on allowing new entrants to bid for 3G licences

New Delhi: India’s department of telecommunications (DoT) plans to allow firms including foreign ones that do not have operations here to bid for so-called third generation, or 3G, wireless services, overruling a recommendation by the country’s telecom regulator that only those firms already in the business be allowed to participate in 3G auctions.

“We want more players to compete in the Indian 3G services market,” said a senior DoT official, who did not wish to be named. “We are currently examining Trai’s inputs, but our rationale for including foreign companies (that do not operate here currently) was to provide more options to the users, and better competition in the market.” Trai is short for the Telecom Regulatory Authority of India.

3G services enable high-speed data access on mobile phones allowing users to surf the Internet or download content, including music and video, at speeds faster than those supported by current cellular technologies. If operators subsidize 3G phones, research firm BDA China Ltd has predicted that there could be around 30 million customers for the service by 2010.

Analysts tracking the sector say they never saw a convincing reason as to why Trai did not want new companies to bid for 3G spectrum. “The incumbents will anyway have an edge since any new, or foreign company will need few months to set up a network,” said Romal Shetty, who heads telecom practice at KPMG.

Trai believes allowing new operators to bid could lead to high and unsustainable 3G auction bids.

“The authority is also apprehensive that in case an outsider entity is allowed to bid for the 3G spectrum then in order to get into the Indian market, some of these companies waiting to get the (universal access service) licence may bid very high for the 3G spectrum,” Trai wrote on 25 April to DoT.

As first reported by Mint on 7 February, the Indian exchequer could earn some Rs20,000 crore, or just more than $5 billion, when the government auctions radio spectrum to five phone firms offering 3G phone services in the country.

Meanwhile, “foreign telecom firms such as AT&T Inc. and Deutsche Telekom AG are keen to have a share of the Indian 3G market,” said an analyst at a research firm who is advising several foreign operators on their entry strategies and cannot be identified as he is not authorized to give any media interviews. “Some of these companies are also simultaneously working on gaining an entry by acquiring an existing operator, or a new telecom licensee.”

In November, Union information technology and communications minister A. Raja said the Indian government would auction up to 25MHz of frequency required for delivering 3G phone services, allowing up to five companies to offer such services.

source :: http://www.livemint.com/2008/04/29011735/D...-new-entra.html

I support DoT stand.

For any reasons excpet for National security, there shouldn't be any entry barrier for market players to serve the customers.

[kesav 127]

FM backs DoT, wants global auction for 3G

NEW DELHI: The finance ministry wants international competitive bidding for allocating spectrum for third generation (3G) mobile services. Finance minister P Chidambaram has spoken his mind in a letter to telecom minister A Raja.

This is in sharp contrast to the recommendation of the Telecom Regulatory Authority of India (TRAI) that bidding for 3G spectrum be limited to companies that already hold telecom licences.

At stake are four things: entry of global telecom majors who do not yet have a presence in the world’s fastest growing telecom market, future profitability of incumbent telcos, the size of revenues accruing to the government from spectrum auction, and the cost of telecom services for the consumer.

The FM’s communication, dated April 21, endorsing ‘open global auction’ comes even as TRAI, in its revised recommendations on 3G auction, reiterated that only existing operators be allowed to participate in 3G auction.

The department of telecom (DoT) had asked the regulator to reconsider its stand against allowing international majors, but TRAI had refused to budge. “The auction for 3G licenses should be restricted to existing operators because they have already made huge investments in infrastructure and will be better placed to deliver 3G services efficiently at low incremental cost,” the regulator had argued.

Mr Chidambaram, in his letter to Mr Raja, has said 3G auction among existing licence holders was not a ‘workable option’. “International competitive bidding model may be used with the following conditions: a) mandatory rollout clause, where spectrum is withdrawn and bid payout is forfeited if rollout (of services and networks) does not take place within a year; conditions of pre-qualification be specified to ensure the competition is restricted to serious contenders,” the letter added.

The finance minister has also proposed that after Mr Raja examines his communication, both of them meet to discuss the issue and the ‘conclusions presented to the prime minister’ thereafter.

DOT sources say following support from the finance ministry, the department may override TRAI’s revised recommendations. If DoT and finmin go ahead with global 3G auction, it will be a major blow to existing telcos that want new players and international majors barred from participating in the auction. But it will be a major boost to global players who had missed the bus in India and planned to enter the country via the 3G platform.

DoT sources also add that finmin view was in line with the department’s stance that all players be permitted to take part in 3G auction. This is because DoT, in its draft 3G policy, had paved the way for foreign players as well as new domestic entrants. Following this, DoT had asked TRAI to reconsider its earlier recommendations of limiting 3G auction to existing operators.

DoT had said TRAI must make way for global auctioning of 3G spectrum under the changed circumstances by incorporating necessary changes in its ‘rule book’. DoT had said the entry of new players would result in increased revenues from spectrum auction, more competition and better services. TRAI has, however, refused to subscribe to this argument.

DoT, in its draft policy, had also added that all players be allowed to bid for up to 10 MHz through two blocks of 5MHz each. The DoT move stemmed from the fact that new players need at least 10 MHz to launch 3G services while existing telcos need only 5 MHz to migrate to 3G.

The regulator has, however, stuck to its earlier stand that each operator must be allowed to bid for only 5 MHz of 3G spectrum.

source :: http://economictimes.indiatimes.com/FM_bac...how/3013153.cms

That's a prudent move by FM.

Allowing only the existing operators would only lead to cartelization.

As we've seen during the 2G pahse, only the new entrants can bring down the tariff.

Case 1 :: entry of TATA and Reliance during the 2G phase.

Case 2 :: Now Videocon, Sistema and others entry has further brought down the tariff.

By reading through the telecoms amply clear that only new entrants have impetus to break even so they want to lure customers with cheap tariff and better quality. Existing operators already have revenue surplus and subscriber surplus so they want just built on them with high tariff without bothering about bringing in new subscribers.

I second the thoughts FM.

[vishalsheth 19]

Hey guys any news of 3G in India? any from reliance? I was just connected to Sprint in USA and it gave speed of 500KBPS. Yes. It's amazing. the download goes in less than 10 secs. This is great. I'm waiting for such speeds in India. I don't think Wi-Fi would be needed then.

Edited May 8, 2008 by Honest
<< Topic Merged >>

[kesav 127]

Foreign 3G players not suited for India: TRAI cautions Finance Ministry

New Delhi (PTI): Amid a debate over entry of foreign players in 3G telecom services, telecom regulator TRAI has cautioned the Finance Ministry that such a move would have serious implications for the sector in terms of affordability.

"As the Authority firmly believes that allowing participation of new prospective service providers for 3G services, at this juncture, will have serious implications on the Indian telecom sector, you may like to revisit the issues before finalising the Ministry's position on the subject," TRAI Chairman Nripendra Misra said in a letter to Finance Secretary D Subbarao.

Last month, TRAI had rejected Department of Telecom's proposal to reconsider allowing foreign players to offer 3G telecom services, saying existing players would be able to roll out network faster.

"As the existing licensees have already made huge investments in infrastructure and their systems are in place, therefore, they will be in a better position to deliver 3G services efficiently at low incremental cost," TRAI had said in its views on Permitting New Entity for 3G Services.

With the number of service providers going up to 13-14 in each circle, the regulator felt there would be sufficient competition to ensure that the spectrum is priced competitively, discourage cartelisation and offer services that are acceptable in terms of quality and price.

Misra has shot off the letter to the Finance Secretary amid media reports that the Finance Ministry was backing DoT's proposal for global auction of 3G spectrum.

http://www.hindu.com/thehindu/holnus/001200805091762.htm

The TRAI's argument,

As the existing licensees have already made huge investments in infrastructure and their systems are in place, therefore, they will be in a better position to deliver 3G services efficiently at low incremental cost

is the base for cartelization since they'll never have any drive to bring down the cost of 3G services. They'll try to use 2G as poor-man services and 3G as premium services which'll certainly defeat the motto of broadband penetration squarely. They'll use the 3G spectrum only for data where the subscribers are very less and hecne they'll not deploy spectrum efficient technologies. Finally it results in wastage of priceless national resources.

If we've green-field 3G operators then

1) They've to break-even quick for the amount of fresh investments and hence urge to acquire subscribers

2) Since they don't have 2 different spectrum, voice traffic has to be deployed in the same spectrum along with data which would force them to use spectrum efficient technologies

3)Green-field operators will always have advantage of starting from scratch which would help them to deploy new technologies in the entire signal-flow chain instead bogged down by legacy issues.

4)It would help the new emerging efficient conglomerates to enter telecom business who missed 2G bus. As a nation we've always longed for fresh ideas and fresh businessmen.

I request TRAI to stop this trumpet and fall in line to promote telecom in a way that it would help the rural population who still have not seen the fruits of Internet connectivity.

:help:

Edited May 9, 2008 by kesav

[kesav 127]

DoT to ring PMO for 3G spectrum auction views

NEW DELHI: The department of telecom (DoT) is preparing to write to the PMO (prime minister's office) to seek its views on the eligibility criteria for 3G auctions.

This communication from the DoT follows telecom regulator Trai' insistence that auctions for 3G spectrum should be limited to existing UASL (universal access service licence) operators only. The telecom regulator has not only refused to allow fresh competition in the 3G space, but has repeated this recommendation twice over in 2006 and more recently in April 2008.

DoT believes 3G auctions should be open to global players as well, a view that finds support from the finance ministry. This conflict of opinion with Trai has forced the DoT to send the matter to the PMO.

The Trai, in support of its recommendations for limited auction, argues that global bidding might increase the price of acquiring spectrum which may not be in the interest of consumers. Trai also believes existing operators can provide 3G services at a lower incremental cost, while offering a higher speed to market.

The DoT is uncomfortable with Trai's approach which restricts open bidding. DoT has suggested that new entrants — Indian and foreign — should be allowed to bid, provided they have one year experience of operating telecom in India or overseas with at least 5 lakh wireless lines. New international aspirants will have to bid after forming JVs with Indian companies.

The finance ministry does not wish to exclude international bidders so long as they meet the eligibility criteria and FDI guidelines. This approach is consistent with all previous spectrum auctions, including in 1995 and 2001.

In its communication, DoT intends to expose the weakness in Trai's argument. In 2006, Trai argued that five blocks of 5 MHz 3G spectrum would allow most 2G operators to provide 3G services. But despite the number of 2G operators increasing to 12 to 13, and increasing odds that a majority will not get 3G spectrum, Trai is unwilling to back down from its stand. DoT on the other hand, believes that it should extract the best price from a fair, open, competitive bidding process, which is neither restrictive nor overly burdensome for new participants.

source :: http://timesofindia.indiatimes.com/Busines...how/3026247.cms

Hope at least PMO will resolve this issue in favor of entry of new operators which is very critical to avert cartelization.

[kesav 127]

Raja to meet Prime Minister on 3G spectrum auction soon

Chennai: The Union Communications and IT Minister, A Raja, is to meet the Prime Minister, Dr Manmohan Singh, this week to have more clarity on allowing more foreign telecom players on third generation (3G) spectrum auction or restrict the auction to existed players.

The Minister declined to give more details on what his recommendations will be on the issue. “Even if participation of more foreign players is restricted, it would be only a semi-global auction since as per the current regulations any foreign player can take 75 per cent stake in an Indian telecom firm,” he told reporters after laying the foundation stone for the Centre for Development of Advanced Computing (C-DAC) new Innovation Centre inside the Anna University.

The Telecom Regulatory Authority of India (TRAI) had said that Government should restrict spectrum auction for 3G mobile services to existing players only. TRAI’s suggestion comes after the Department of Telecom sought its views on whether or not to allow foreign and new players to bid for the spectrum by issuing a 3G specific licence.

TRAI in its recommendations said, “The existing licensees due to their available infrastructure are in a better position to deliver 3G services efficiently, quickly and at low incremental cost in the Indian price sensitive market.”

The innovation centre at Anna University will be constructed at a cost Rs 15 crore as grant-in-aid to C-DAC from the IT ministry. The new facility will be spread over 35,000 sq ft and seat around 200 engineers. Both C-DAC and Anna University will jointly do research and development in various areas, including free and open source software, Raja said.

source :: http://sify.com/finance/fullstory.php?id=14672259