wordpress blog stats
Connect with us

Hi, what are you looking for?

, ,

3G Auction India: The Uttar Pradesh Problem; Points To Ponder

3G Auction Results coverage brought to you by One97 Communications. Lets Get Talking about 3G!

No telecom operator has received pan-India spectrum, at the end of India’s 3G Auction. Above all, I think it’s ridiculous from a consumer perspective that Uttar Pradesh was split into two circles. Aircel and Vodafone have spectrum only in UP (East), while Bharti Airtel and Tata Teleservices have spectrum in UP (West). Idea Cellular is the only one to have spectrum in both the UP circles. Download our 3G auction chart here (pdf).

How do you operate in half a state? What do you tell a consumer in UP: that if he crosses the invisible spectrum border between UP (East) and UP (West), 3G services will stop working? Consumers expect coverage to be ubiquitous. Our take is that, in the interest of consumer experience, spectrum sharing within a state should be allowed.

Perhaps telecom operators will take the approach taken by BSNL: launch city-by-city, instead of state by state. That means that the addressable market for 3G shrinks further, and the price paid for 3G spectrum looks even less realistic.

Also note how randomly the spectrum slots have been distributed: in many cases, telecom operators who have been fortunate enough to get adjoining states, do not have the same spectrum slot in both. So consumers will have to be transitioned from one frequency band to the other when they cross state boundaries, which means that if you’re watching a live video stream while travelling from Mumbai to Pune (Maharashtra Circle) on Vodafone, you will be disconnected before a switchover.

The broadband wireless auctions should begin in a couple of days, with more bidders, but hopefully, more insight following these 3G auctions.

Meanwhile, some external news coverage for you to look at (we’ll update this on the fly):

— Idea Cellular will pay Rs. 9.62 crores for every Rs. 100 crores of revenue currently being generated in the circles it has won. More on other operators at the Economic Times

— The metro circles (Delhi & Mumbai) are priced on part with UK and Germany, at $5.5/MHz/population, and $0.6/MHz/population on an all India basis, on par with US 3G benchmarks. More at Hindu Business Line

— Telecom operators may have to sell assets within the next 10 days to pay for 3G. Airtel will see its debt-equity ratio will rise to 2.3, while RCOM and Idea Cellular will rise to 3.5. More at Mint

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....


By Anand Venkatanarayanan                         There has been enough commentary about the Indian IT...


By Rahul Rai and Shruti Aji Murali The Indian antitrust regulator, the Competition Commission of India (CCI) has a little more than a decade...


By Stella Joseph, Prakhil Mishra, and Surabhi Prabhudesai The recent difference of opinions between the Government and Twitter brings to fore the increasing scrutiny...


This article is being posted here courtesy of The Wire, where it was originally published on June 17.  By Saksham Singh The St Petersburg paradox,...

You May Also Like


The Uttar Pradesh State Law Commission proposed a ban on online gambling in the state in a June 15 report submitted to Chief Minister...

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
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