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India’s 3G Policy: Backdoor Entry For More Telcos; What About Viability?

India announced their 3G policy (hopefully the final version) on Friday. Bloomberg reports that as many as 10 operators may be allowed to offer 3G. The auction process is expected to begin in two months, and complete by December. Initially, 3-5 operators will be allowed to sell 3G services, and 5 more may be allowed in each area. Operators are expected to start offering services in the first half of next year, adds IDG. The auction would raise up to $9.5 billion for the Indian government. Telecom minister Raja sees revenues of Rs. 300-400 billion. Some highlights from the 3G Policy: -- Bidders need to have an UAS License, or eligible for one, with prior 3G experience -- Successful bidder gets a license for 20 years -- If successful, but without UAS License, a separate license fee for UASL will have to be paid -- Spectrum allocation by auction of 5-10 blocks of 2x5 MHz in the 2.1 GHz band -- EVDO - auction for CDMA in 450 MHz and 800 MHz band, and 1900 MHz when it becomes available. -- Reserved: 1 block each in Delhi and Mumbai for MTNL, other service areas. They'll pay a price equal to the highest bid for that area -- Auction Reserve Price for Mumbai, Delhi and Category A at Rs. 160 crore, Kolkata and Category B at Rs. 80 crore, Category C at Rs. 30 Crore -- Bank Guarantee of 25 Percent of reserve price, for auction. -- In subsequent auctions, the…

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