Successful 3G bidders eligible for 2G spectrum

Successful 3G bidders would also be eligible for 2G spectrum but the bidders have to be in queue, R Ashok, Member (Finance) of the Telecom Commission, has clarified.

''Successful 3G bidders will be eligible for getting 2G spectrum," he said while addressing a pre-bid conference for auctioning 3G and BWA spectrum.

There was some confusion about the availability of 2G spectrum for bidders of 3G spectrum even as the government set auction date for the allocation of third-generation radio spectrum for next month.

While the 3G bidders are elgible for 2G spectrum also, the availability of 2G spectrum is an issue and it unlikely that the 3G bidders would get it right away.

''The 3G players are eligible for 2G spectrum but they can get the spectrum only after the need of the existing players is met,'' T V Ramachandran, director-general of the Cellular Operators Association of India (COAI) said.

The meeting was called to give a final opportunity for operators to clear the air on issues, including frequency bands, rollout obligations and licence conditions.

Post meeting  the DoT will ask operators wanting to participate in the 3G auction to submit their applications by 5 January 2009.

Industry analysts expect 3G spectrum auction to fetch the government a minimum Rs30,000 crore ($6 billion) while communication and IT minister A Raja said the amount could be as much as Rs40,000 crore.

However, all telcos are not happy with the terms of offer and those who are bidding for both 3G and broadband wireless access (used for WiMax technology) spectrum are expected to seek policy changes.

The WiMax forum has already sought parity in the period off allocation. While the policy states that 3G spectrum will be given for a period of 20 years, the tenure for BWA is only 15 years.