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Indian Govt Modifies Auction Guideliness: 3G CDMA Auction, WiMax Reserve Price Increased

The headline for this PTI report would have you believe, incorrectly, that only those companies with prior 3G experience are allowed to bid for a 3G spectrum in India. That is not the case. The updated guidelines are available for download - for 3G and Broadband Wireless Access. The Department of Telecommunications (DoT) has modified the 3G guidelines as follows: -- New Applicants Need 3G Experience: Now companies with either a Universal Access Service (UAS) License or a Cellular Mobile Telephony Service (CMTS) License may bid for spectrum. Apart from this, companies with prior 3G experience who give an undertaking to obtain a UAS License may also apply. -- CDMA Spectrum Auction: 2x1.25MHz of spectrum in the 800 MHz band, which was previously going to be made available to CDMA operators at the price-equivalent to the highest bid in the 2.1 GHz band, will now be auctioned as well. However, they're getting a reserve price for the auction as 25% of the reserve price for the spectrum in 2.1 GHz band. -- Spectrum usage charges lowered: Now, instead of charging companies 1 percent of their Adjusted Gross Revenue after 1 year, as spectrum usage charges, the government will charge 1 percent of incremental revenue due to 3G, after a period of 1 year. In case of Broadband Wireless Access, -- ISPs Included: Category A and B ISPs can also bid for BWA spectrum -- Reserve Auction Price Increased: The reserve auction price was earlier supposed to be 25 percent of…

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