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3G Services For Mobiles To Get Costlier

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Third generation (3G) services on your mobile phone, such as high-speed internet access, video conferencing, movie clips and interactive gaming are going to be costly. This has resulted due to recent spectrum auction in the which fetched a record $19.12 billion.

The windfall netted by the US auction has led to some members of the Telecom Commission (TC) having second thoughts on the reserve price set for 3G auction in India. Serious differences have cropped up within the commission over computation of reserve price for the high-stakes auction and allotment of 3G mobile spectrum.

A section within the department of telecom (DoT) and TC feels the reserve price of Rs. 1,035 crore (about $250 million) for 5 MGz of 3 G spectrum for pan-India operations is too low. This, despite department of telecom endorsing the Rs. 1,035 crore reserve price in its draft 3G guidelines submitted to Telecom Commission last month.

Communications minister A Raja is set to give the go-ahead in the late April or early May to kick off the 3G spectrum auction, department of telecom may make changes in the draft 3G policy and sharply jack up the reserve price for 5 MGz of 3G spectrum when the guidelines are announced. A final decision, however, is likely to be taken by the Minister.

Government sources told ET that Telecom Commission was yet to take a final call on whether the base price should be revised. The commission may also seek Mr Raja’s views, sources added.

Even department of telecom has conceded that the recommended reserve price in its draft guidelines for 3G spectrum auction is on the lower side and may be reviewed.

Another factor that suggests the reserve price may be reviewed is a recent internal note of the department of telecom.

Source-Economic Times

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Tags: 3G Spectrum Set, high speed internet, mhz, movies on mobile, telecom communication