Govt expects good response from foreign cos for 3G bid

Unfazed by a lukewarm response from foreign players in the pre-bid meeting yesterday, the government is hoping that a large number of overseas companies will apply before January 5, the last date for receiving application for 3G spectrum auction.

"It was just a pre-bid meet, not a final word on their participation. Sometimes companies stay away from public events to keep their business plans under wraps," said an official of the Department of Telecom (DoT).

The official expressed hope that the government's decision of allotting 2G spectrum to successful 3G players (standalone) will attract more foreign telecom players.

The pre-bid conference conducted yesterday as a build-up for the upcoming 3G and BWA spectrum auctioning, saw few international players.

DoT is also hopeful of high bids by the companies despite the global financial crisis in the auction  slated in mid-January. The government hopes to raise about Rs 35,000 crore from the sale.

AT&T and Intel were the only foreign players present in the pre-bid meet. Indian operators (2G) were present.

The 3G services enable customers to watch live mobile TV, download music and browse the Internet at high speed.

The auction will begin on January 16 for 20 of the country's 22 telecom service areas or circles, while four 3G slots in most of these regions have been put on the block. The reserve price for pan-India spectrum has been set at Rs 2,020 crore.

All international telecom firms such as Vodafone, SingTel, Telenor, Etisalat, TM International and Maxis, are already present in the country through partnerships with Indian firms.