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Tuesday, Dec 30, 2008
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Business Daily from THE HINDU group of publications Tuesday, Dec 30, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Telecommunications Info-Tech - Broadband Government - Policy Web Extras - Regulatory Bodies & Rulings 3G spectrum auction postponed to Jan 30
DoT has sought Cabinet’s nod on its proposal to limit auctions to five berths in each circle Some of the prospective bidders have also sought more time to understand the auction rules Our Bureau New Delhi, Dec. 29 The Department of Telecom has postponed the auctions for third generation mobile spectrum by two weeks to January 30. It was earlier announced that the auctions would take place on January 16. The auction for broadband wireless spectrum has also been pushed back. According to Government sources, the auction has been postponed since DoT is yet to get approval from the Cabinet on two important decisions related to the 3G auction. DoT has sought Cabinet’s nod on its proposal to limit auctions to five berths in each circle. Cabinet’s approval has also been sought because DoT over ruled a proposal from the telecom regulator to impose additional administrative charges on 3G players. These decisions were taken by the Telecom Commission on December 19. The Cabinet Committee on Economic Affairs is expected to take up these issues in its next meeting. DoT officials also said that some of the prospective bidders have also sought more time to understand the auction rules. Industry dividedThe industry is divided over the timing of the auction. While some of the CDMA operators including Reliance Communications do not want the auctions to be held now, existing GSM players such as Bharti Airtel are keen to go ahead. Some of the foreign players also want the auction process to be reviewed since the current policy is seen to be not favourable to them. A few players have also sought a delay on account of the existing credit crunch. However, the Government wants to go ahead with the auction before the end of its current term. It is expecting to get revenues of over Rs 20,000 crore from the auction, which will help the Finance Ministry to bridge the budgetary deficit. Most of the equipment vendors and chip makers including Ericsson, Intel, Qualcomm and Nokia Siemens are backing the Government to push through the auction. According to the revised schedule, the notice inviting tenders will be issued on January 9 and the last date of submitting applications by prospective bidders will be January 15. Mock auctions are likely to take place on January 27-28. This is the second time that the DoT has changed the auction dates. If there are any further delays then the auctions may take place only after the general elections, which will push back India’s entry into the next generation telecom services by at least a year.
Meanwhile, State-owned BSNL and MTNL have been given 3G spectrum ahead of the others and they have already announced plans to launch 3G services in early 2009. A delay in 3G auction could also impact the PSU’s rollout plans as private operators may object to them getting a one year lead in terms of offering services to consumers. 3G auction: DoT offers sops to lure foreign firms TRAI wants administrative charges to be levied on 3G operators 3G, WiMAX spectrum to be auctioned in two phases More Stories on : Telecommunications | Broadband | Policy | Regulatory Bodies & Rulings
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