India to Allow 10 Wireless Carriers to offer 3G in India

By Azam on August 1, 2008

India plans to launch 3G services through upcoming auction according to India Communications and Information Technology. The wireless communication industry is set for further growth with advance services offered through 3G.

Airwaves to provide third-generation, or 3G, services, which enable faster video, music and data downloads, will be sold through a global auction, India’s Communications and Information Technology Minister Andimuthu Raja said in New Delhi mentioned in bloomberg

 

The ministry expects to start the auction process in about two months and complete it by December, Raja said. India has set a base price of 20.2 billion rupees ($476 million) for a license to provide nationwide 3G services using the global system of mobile communications, or GSM, standard, and overseas operators will be allowed to vie for the licenses, the minister said.

India will allow three to five operators initially to sell 3G services in each of the country’s 23 so-called service areas with state-owned Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd. automatically being granted spectrum for the faster services, the minister said. The government may later allow five more providers in each area, he said.

Bharat Sanchar, the nation’s fourth-largest wireless provider, expects to start 3G services by January, Chairman and Managing Director Kuldeep Goyal told reporters today.

Bharti Airtel is seen to be a big winner in 3G being auctioned. Bharti Airtel is the Indian Nation largest wireless carrier followed by Hutch/Vodafone. The auction allows Bharti Airtel Ltd. and other Indian mobile-phone operators to prepare to offer faster services and help boost profits. Ericsson AB, Nokia Siemens Networks and other equipment makers may also benefit as the upgrade of networks will lead to orders worth billions of dollars.

The Fastest Growing Market

India surpassed the US as the second largest wireless after China. India has reached 278M subscribers in June. The availability of 3G and high speed networks will further boost the industry and the competition in very attractive market that is projected in the future to more than double in the number of subscribers. India nation is where only one fourth of the population of 1.2 billion people has mobile-phones, added an impressive 8.95 million subscribers in June, and compared with China’s 8.63 million additions. India currently has some of the lowest fees per call in the world and wireless industry will benefit with value added data services.

“The government’s 3G licensing plans represent a major boost to India’s economy,” Tom Phillips, chief government and regulatory affairs officer at the GSM Association, said in a statement e-mailed by the Cellular Operators Association of India.

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