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3G Auction in India

May 19, 2010 by Post Team 

3G Auction in India:NEW DELHI – India’s auction of third generation (3G) bandwidth for mobile services ended on Wednesday, with final bids to ensure the government a windfall of about 15 billion dollars.

Provisional results will be published on the website of the Department of Telecommunications, after 34 days of frenzied bidding that saw the price of a pan-India groove raised over $ 3.6 million – beyond price.

Nueve cellular companies, leaders in the Indian market Bharti Airtel and Reliance Communications, has participated in more than 180 rounds of bidding.

The expected price to win a slot bandwidth for super offer 3G services across India was 168.2 billion rupees ($ 3.6 million), from an initial offer price of 35 million rupees.

None of the companies bidding for 3G mobile spectrum won in all 22 service areas in the game, but Bharti Airtel, Reliance Communications and Vodafone Essar spectrum won all the key areas of Delhi and Mumbai.

provisional government revenues from the sale are estimated at 677 million rupees ($ 14.6 million), which will go a long way to plug a yawning budget deficit.

The auction in the fastest growing market in mobile telephony in the world India is seen as a decisive momentum in the Internet age.

There are about half a billion mobile phone users in India, only a fraction of which have Internet access through computers. New 3G networks will give people quick access to the web from their phones.

Butanlysts say the high cost of 3G spectrum may strain the balance sheets of the telecommunications companies from India, which are already under pressure from a fierce price war in the mobile market is saturated.

“There will be no quick recovery,” said telecommunicationsanlyst at KPMG Roman Shetty AFP, predicting business is only beginning to gain money from their investments in four or five years, after consolidation of the Indian market overcrowded.

3G enables mobile phone users to surf the Internet, video and download music, video and other content at a rate much faster than the current second generation or 2G service.

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