Why is 3G Auction of Spectrum so Aggressive ?

The Bid for PAN India 3G Spectrum in the ongoing Auction has reached a whopping $1.7 Bn, a move the world is watching. This is despite the fact that deep pocket Foreign Telcos were discouraged from entering the game by the Government with unclear policies and roadmap for the industry.

We were intrigued to know the reason behind this aggressive bidding, despite the business case for Pan India 3G services is still 24 months away. The top bids are concentrated in Metro and Circle A. Here is our take circle-wise,

  • Delhi & Mumbai –  Metro circle, key market for 3G services
  • Maharashtra – Key circle for Idea, Tata Teleservices in addition to national peers Bharti and Vodafone
  • Tamilnadu – Presence of strong regional player (Aircel) along with national player
  • Gujarat – Shortage of 2G spectrum
  • Karnataka & Andhra Pradesh – important market for 3G services dominated by IT Sector

WE expect the bidding to complete in the next week and the All India price is likely to be around USD 2 Bn. Your take ?

Author: Webmaster

1 thought on “Why is 3G Auction of Spectrum so Aggressive ?

  1. Additionally for the incumbent operators,

    1. Brand value dilution without 3G services
    2. Opportunity & financial value associated with 3G Spectrum
    3. 3G to help offer distinguishing services & help in retaining subscribers, post MNP
    4. For Vodafone and Tata DoCoMo Global experience to help launch new product & services on 3G platform

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