Bharti Airtel supports auction of spectrum for 3G services

23 July 2008

India's largest cellular operator, Bharti Airtel wants a global auction of spectrum for 3G (third generation) services that would allow users access to video calls, video streaming, high-speed Internet browsing and movie downloads, among others. It said "equity and objectivity in the process" could bring revenue worth billions of dollars to the government. 

Outgoing Vodafone CEO Arun Sarin had also recently called for the auction of spectrum in India.

Airtel has already been offering 3G in Seychelles since early 2006 (See: Airtel to launch 3G in Seychelles) and says it has already tested it in Mumbai, Delhi and Bangalore.

In liberalised India competition with a level playing field and terms and conditions for 3G spectrum auction should be fair to existing as well as new operators in bidding for the spectrum wherein a better company and brand could win and deliver the goods. 
 
The Department of Telecom is already in the process of setting procedures for auctioning spectrum for 3G services.  It expects foreign telecom service providers to bid for 3G spectrum at a higher rate.

Some European countries have followed the auctionprocess to maximise refenues.  The UK for instance had raised over $25 billion though auction of 3G licences in 2001,  around half its annual income tax revenue then. 

Inspite of various government levies being charged at 30 per cent Bharti Airtel rates are considered one of the lowest in the world at 40 paise a minute.