|
3G SERVICES IN INDIA WILL HAPPEN?
November 1, Nov 01, 2008 (Asia Pulse Data Source via COMTEX) --
Will 3G services ever happen here? asked a mobile phone user to Telecom Minister A Raja at a recent event and the optimistic minister asked the person to wait till mid-January. The question could not have come at a more right time. The Minister was also not expected to give a different answer with Finance Ministry sitting on its head to expedite the auction process and the global attention on Indian 3G experience. Global financial crisis, segregation of revenues between 3G and 2G services and spectrum crunch are the three potential hindrances for the timely roll out of 3G services in India.
World?s largest mobile phone compant Vodafone has sought delay in 3G License auction in India. It looks like that even mighty Vodafone seems to be feeling the credit crunch. The company which operates in India in a JV with Essar group has written to the government seeking a delay to the 3G license auction - citing difficulties in raising the necessary funds. The auction is expected to be held before the end of this year, although recent reports have suggested the government may have to delay the auction due to radio spectrum issues.
?Mobilising financial commitments in the current environment is proving to be an extended process,? Vodafone Group?s director (public policy), emerging markets, Neil Gough said in a communication to the department of telecom (DoT). At least three other companies have written to the government seeking a delay, said sources.
However, telecom Minister A Raja has maintained that the roll out would be on schedule.
The auction process of 3G spectrum for telecom operators is as per schedule and will not be delayed as fund crunch following the global financial crisis is unlikely to impact the process, Raja told the media.
The third-generation or 3G spectrum is scheduled to be auctioned by December-end. There is no question of allowing partial payment of the bid prices by the telecom firms, he said adding maximum it could be held by January 15 taking into account holidays. The problem does not end here. DoT is also facing 3G spectrum crunch in Delhi and 8 other circles. It is is seeking part of the unused spectrum from the defence forces so that the same could be given out to the telcos, both for 2G and 3G services The much-awaited auction may hit yet another roadblock with the Department of Telecom is having no or very less radio frequency in nine circles?including Delhi - as the Defence Ministry is yet to vacate this scarce natural resource.
With the auction round the corner, in nine service areas the amount of spectrum required is 30 MHz (to accommodate at least six operators), which is not available, according to a paper by DoT to be presented to the Defence ministry.
In Delhi alone, there is a shortage of 15 MHz. Going by this, only three operators can be given the spectrum to roll out 3G services. In Rajasthan there is no spectrum available at all. The shortfall can be overcome if the defence forces make available the radio frequency assigned to them in service areas such as Delhi, Rajasthan, Jammu and Kashmir, Gujarat, Uttar Pradesh (East and West), Himachal Pradesh, North East and West Bengal. The other key disagreement is over the Government?s move to split revenues from 2G and 3G services with a view to provide level playing field to standalone foreign mobile players who would enter India to offer 3G services in a JV with a local partner. There has been so no headway in 2G-3G revenue split imbroglio. While DoT and COAI are of the view that segregation of 2G and 3G revenue is possible, CDMA players, TRAI and Finance Minister feel otherwise.
While GSM operators association COAI told a DoT panel that segregation was envisaged under the policy itself and that only modality was to be worked out, the CDMA operators body AUSPI said the 2G and 3G revenue streams were indistinguishable. COAI said the Radio Access Network was different for 2G and 3G and traffic segregation was a function of the radio access network, AUSPI said all network elements except radio access are common in 2G and 3G networks.
AUSPI further said spectrum charge was an important aspect that each bidder would need to know and an integral part and basis for a potential bid for 3G spectrum. All these aspects should be clarified and a transparent mechanism put in place before 3G bidding process was undertaken.
In fact taking the global credit crunch into account RBI recently allowed 3G aspirants to borrow foreign funds up to 500 million dollar through ECBs although there is a demand to raise this limit. The DoT has already appointed Rothschild as an agency to conduct e-auction of 3G spectrum and the government is looking at garnering about Rs 25,000 crore from the bidding process. Leading mobile operators like Bharti Airtel, Vodafone, Idea, RCom and Tatas would be in fray to bag spectrum for 3G services. If DoT remains successful in carrying out the 3G exercise, it would be a case to study. Indeed.
[ Back To TMCnet.com's Homepage ]
|
TMCnet LOGIN
Webinars
