Govt to release 60 MHz of spectrum for 3G by '07

The department of telecommunications has prepared a road map for the release of 3G spectrum, under which it would require the defence ministry to vacate 25 MHz by the end of December 2006, and another 35 MHz by 2007-end.

3G mobile services permit high-speed internet access using different wavelengths, and allow operators to offer mobile broadband services like video-and audio-streaming, among other things.

The road map, if implemented, would mean there being not enough 3G spectrum for the eight pan-Indian mobile telecom operators by the end of this year. Telcos require a minimum of 5 MHz each to run 3G operations.

This implies that only five of the eight mobile operators across the country can operate 3G services by the year-end. The main mobile operators include Bharti, Hutchison-Essar, Idea Cellular, BSNL, Reliance Communications, Tatas, Spice Telecom, and Aircel-Maxis (both of whom are going, or will go for an all-India licence).

In the second year, however, there will be enough spectrum for all the existing telcos, and it might be possible to give them even 10 MHz each to run 3G services. Spectrum of 5 Mhz is enough to support over 3-4 million 3G customers per operator, with heavy data applications.

The defence ministry is now using most of the 3G spectrum bands for its own equipment. However, it has agreed to vacate them in phases, for which it requires new electronic equipment. And that is expected to cost over Rs 1,000 crore.

At a meeting cellular operators had with the Telecom Regulatory Authority of India (Trai) a week ago, the discussions centred on how to distribute the scarce resources. One suggestion sought offering the spectrum to five telcos, while the rest shared the infrastructure of the others for the time being.

In that case, customers of telcos that had not been granted 3G spectrum could roam on the networks of the other five operators. This is possible as none of the operators expects to rope in 5 million 3G customers within the next few years.

The selection of the five operators, the COAI suggested, could be based on a parade that took into consideration different parameters "" the quantum of investment committed, the cheapest 3G tariffs promised, among other things.