TMCnews Featured Article
April 12, 2010
Mobile VoIP Provider Comments on Indian 3G Spectrum Auction
By Susan J. Campbell, TMCnet Contributing Editor
The Indian government was likely in high spirits on Friday as its mobile operators began bidding to provide superfast third-generation services in the cellular market. According to an AFP report, this sale is expected to reap the government billions of dollars.
Industry experts also said this sale of 3G spectrum as propelling India firmly into the Internet era. The country is notorious for its slow adoption of landline broadband networks as it has been costly. However this latest move for the nation is expected to intensify the battle for customers in what is considered to be the world's fastest-growing mobile market.
Bidders participating in the 3G auction included Indian operators Bharti Airtel (News - Alert), Reliance and foreign-backed Vodafone Essar and Tata DoCoMo. According to one telecom ministry official, the auction started and ran smoothly throughout the day.
With a reserve price set at 35 billion rupees or $789 million dollars and expected to bring in a minimum of 350 billion rupees or $8 billion dollars for each of the three pan-Indian 3G licenses across 22 zones. The floor price for broadband spectrum will begin two days after the 3G auction ends is 17.5 billion rupees. Only two broadband slots will be up for sale.
While there were nine operators bidding for 3G spectrum, analysts expect the bidding to go much higher that predictions due to the severe crunch for spectrum in the congested mobile market.
The Economic Times newspaper quoted one government official as saying the 3G auction could last 15 to 20 days while the subsequent broadband sale could extend the process up to 45 days. By comparison, Britain's 3G auction lasted seven weeks and involved 50 bidding rounds.
"During the 3G auction in India today, nine big service providers in are testing their luck for 3G license," said Smriti Tripathi, Deputy Manager- Marketing Communications, REVE Systems on Friday.
"REVE Systems thinks that with more service providers stepping into 3G arena, there will be a positive influence on the total population of mobile Internet users who may now want to explore the new ways of mobile communication through the Internet -- mobile VoIP, being one of these."
This sale is significant as India is the biggest major economy that has not yet experience the widespread 3G services. The winners in this particular sale will be awarded spectrum in September. Rollout of 3G services throughout the country won't happen until the end of 2010 or early 2011.
Singapore-based REVE Systems is a VoIP solution provider that recently launcheda complete retail IP telephony platform, the "iTel Mobile VoIP Solutions" for Indian VoIP service providers. With the introduction of REVE Systems' customized IP telephony solutions for call centers, small and large ITSPs and carriers, India has stepped-into the competitive market of mobile VoIP.
Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan's articles, please visit her columnist page.
Edited by Stefania Viscusi
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