Tuesday, August 19, 2008

Entry of foreign telcos

If reports are to be believed the government is very keen on addressing the apprehensions of 3G spectrum bidders who had shown lukewarm interest in the 3G spectrum auction process initially. As per the policy change planned the foreign telcos that win a bid for the 3G spectrum can buy or merge with local players who have 2G spectrum. Whether they have to pay more for it or not, the door will be open for entering into 2G services as well. In the existing framework, winning foreign 3G bidders would have to wait for 3 years before they can get into 2G services which will have them at a disadvantage over local telcos who would have their 2G spectrum added with the 3G spectrum they would be allocated after the auction. This planned move is found to be advantageous to such players as AT&T who have been waiting for long to taste the 3G pie in India. This is also seen to be an opportunity for Indian non-telco majors to get into the scene through tieups with foreign players. Though we don't know at present how such entities will have a piece of the 2G spectrum very essential for a having a level field, we know of wishes of Mahindra and Videocon to
enter the Indian telco scene. It will be interesting to follow the spectrum sweepstakes...


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