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RK Jacob
10 February 2010
Indian telecom companies were excited with the announcement of 3G auctions for high-speed mobile service. But now with the delay in auction for four times in a row, mobile operators are uncertain about the start of 3G services in the world’s largest wireless market by users after China.The Indian government still expects to accumulate a total of USD 5.5 billion for four national and 22 regional licences, despite a weak growth in profit and falling stock prices due to a price war that has driven calling rates to well under 1 cent per minute. Carriers will need cash to bid on spectrum, and building a nationwide network will cost each as much as $4 billion. So far, the start of 3G has not been fruitful. State-owned operator BSNL, which the government allowed to launch 3G a year ago, currently offers service in 300 cities, has cut tariffs at least twice, and has just 700,000 customers. The company’s record doesn't seem to encourage competitors. Add a comment |
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