India's 3G Policy Announced, Some Key Points to Note.

01 August 2008

Government of India has finally announced its policy on 3G spectrum allocation, paving way for 3G mobile services in country.Telecom minister A.Raja said there would max 10 player in each circle and spectrum would be allocated by bidding method, where the highest bidder gets spectrum.

3D an acronym for 3rd generations of mobile services which supports high-speed video messaging(video calls), mobile TV, gaming etc. the introduction of 3G in India is delayed,now the world is moving towards 4G.

nevertheless its a welcome move as its many time faster than present EDGE networks.

The Detailed policy can be read here. some of the important points mentioned in document.

Initially, 5players would be allowed in each circle. later this limit would be increased to 10. Delhi & Mumbai will have 3 players instead of 5.
Allocation of Septrum would based on a third party auction, which means telcos have to shell out more money, subsequently this cost will be passed onto the consumer in form of higher cost. as a Expection BSNL & MTNL would be allotted spectrum preferential basis.

Unfair Policy for Delhi and Mumbai telecom circles
Delhi & mumbai, which is biggest market for 3G will only have 2 private GSM players because the government has made it very clear that there are only three slots available for 3G spectrum in Delhi and Mumbai and two are already going to be reserved for BSNL and MTNL. this is a big blow to all private players.Idea cellular and reliance communication are also bidding for spectrum. This would ensure aggressive bidding and higher service costs.

Only two operators of Airtel,Vodafone,Idea & Reliance will get 3G license.

Bad news for Apple iPhone Lovers

Airtel and Vodafone are official carriers of iPhone in India. infact they have also announced publicly they will launch Apple iPhone 3G. now their plans seems to in toss in two most important circles i.e Delhi & Mumbai. there would be only 2private operators in these circles and more than 15bidders. this would ensure cut Cut Throat competition subcribers in other cities like chennai are more lucky to have 5 players.

Situation is better in CDMA space, there is no competition there. and bidder would get 3G spectrum at base price. BSNL & MTNL will not bid for CDMA.

And 3G services are expected to roll out around may-jun 09.
Get ready to enter new era of Telecommunication.

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