New Delhi - The Indian government on Friday announced it
would hold a global auction for licenses to offer third-generation
(3G) high-speed wireless services, news reports said.
Communications and Information Technology Minister Andimuthu Raja
said up to 10 players, including eligible foreign operators, would be
permitted in the 3G space, the PTI news agency reported.
The 3G technology allows faster downloads of video and music, and
the auction would see India join several other countries in providing
the latest telecommunications services.
Operators would be exempted from paying any annual fee in the
first year of operations, but they would have to pay 1 per cent of
their adjusted gross revenue as an annual spectrum charge after one
year, the report said.
Local media reported that the Indian government hopes to generate
revenues from 7 billion to 9 billion dollars through the 3G auction.
India is the world's second-largest phone market after China with
more than 261 million users, but industry experts said
telecommunications services have yet to penetrate vast stretches of
its rural areas.
After undergoing rapid growth, the Indian telecommunications
sector is gradually entering a phase of consolidation, which is
likely to involve competitive pricing, strategic manoeuvres and
market expansion.
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