News Tech Tunnel

An Indian vendor uses her mobile phone to take customers orders at a wholesale market on the outskirts of Hyderabad in April 2009. India said Saturday a long-delayed auction of radio bandwidth for third generation (3G) telecommunications services will start in January and will be open to foreign firms.

India said Saturday a long-delayed auction of radio bandwidth for third generation (3G) telecommunications services will start in January and will be open to foreign firms.

The auction will start January 14, 2010 with bids to be submitted by December 21, the Department of Telecommunications said in an announcement posted on its website, adding that the time schedule could be revised.

The auction of 3G radio spectrum for mobile services will put India’s cellular market — the fastest growing in the world — on track for a new level of wireless telephony, experts say.

The government has said it aims to raise 250 billion rupees (5.38 billion dollars) from the sale of 3G bandwidth that would allow high-speed Internet, video downloads and other sophisticated services on cellular telephones.

The government hopes to use the money raised from the auction to help plug a yawning fiscal deficit.

“The government of India is keen that potential new entrants to the Indian telecommunications sector, as well as existing operators, should be encouraged to take part in the auctions,” the ministry statement said.

“Interested foreign entities are allowed to participate in the auctions directly and apply for licences subsequently.”

India has said it aims to sell four 3G licences and three broadband wireless access licences in 20 of the 22 telecom zones.

It does not have available spectrum to auction in the other two zones.

© 2009 AFP