wordpress blog stats
Connect with us

Hi, what are you looking for?

Delayed 3G Auction By Jan 15; RBI-ECB; Gambling On 3G With Borrowed Money?

Given credit crunch, the Department of Telecom has deferred the 3G auction till January 15th. Earlier the auctions were to be completed by the end of the year. A revised timeline, via the Hindu, is as follows:

Nov 30: Auction design, bid document to be prepared
Dec 15: Inviting operators to bid
Dec 31: Prequalification of bidders
Jan 15: Auction to be completed
Jan 25: Signing of contracts with successful bidders
Jan 31: Depositing of first tranch of auction money

Note that we couldn’t independently locate the schedule on the DoTs site.

What’s also interesting is that the Reserve Bank of India has also allowed telecom companies to raise funds from overseas, in order to acquire 3G licenses. Note that some mobile operators, namely Unitech Wireless and Datacom, are yet to close deals with potential partners/investors, while some have already done so. I wonder if the valuations of these companies may have been impacted over the past month or so, and perhaps rationlized. Take look at how expensive rollouts have been Idea cellulars profitability was severely hit in the last quarter, when they rolled out in Mumbai. The RBI go-ahead thus allows companies to gamble on 3G with borrowed money…

Advertisement. Scroll to continue reading.

You May Also Like

News

While India still awaits its National Cybersecurity Policy, the United States President on Wednesday issued an executive order that overhauls its cybersecurity policy. “Cybersecurity incidents...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ