Differences crop up on 3G procedure; may delay rollout

Betraying differences within the department on foreign companies bidding for 3G spectrum, Minister of State for Communication Jyotiraditya Scindia feels the current procedure may impede the entry of American firms.    

Scindia has asked for information on whether US operators, who have evinced interest in the Indian telecom sector, can start 3G operations using the standalone 5 MHz spectrum.     

The Department of Telecom (DoT) has acknowledged that 5 MHz is not enough for foreign telcos to start services, sources close to the development said.    

The US players want DoT to allow them to bid as 100 per cent foreign entities or give them a minimum of six to seven months after announcement of bidding details to enable them form JV with Indian firms before the spectrum is auctioned.    

This, if allowed, can derail the 3G process rolled out by the government and further delay launch of the much awaited next generation mobile services in India.    

Amendments made by DoT to the guidelines on companies that can offer 3G mobile-phone services said that new entrants would have to pay an additional Rs 1,650 crore to acquire a basic licence in addition to the money they bid for spectrum needed to offer 3G services.    

The foreign telecom operators who are interested in entering India's market to provide 3G telecom services have to shell out Rs 3,700 crore more than the existing license holders.