3G and WiMax update

After months of back and forth, the government has fixed Rs 3,500 crore as the reserve price for auction of third generation (3G) spectrum. The decision came after a meeting of empowered group of ministers (EGoM), headed by finance minister Pranab Mukherjee, on Thursday.The auction of 3G airwaves had been delayed on the issue of reserve price. The Department of Telecom (DoT) had fixed Rs 2020 crore as the reserve price but Finance ministry had suggested doubling of reserve price to Rs 4040 crore. The decision of the committee would be submitted for cabinet approval.
The EGoM also fixed Rs 1,750 crore a the reserve price for WiMax services and approved auction of three slots in this space. The 3G services would allow mobile users to access high-speed internet and watch videos and movies at a much faster pace. "The government will complete the auction of 3G spectrum within three months and expects to raise Rs 25,000 crore from 3G and Wimax auction," communications and IT minister A Raja said after the EGoM meeting.
The launch of 3G mobile services in India has been delayed twice this year and the talks have been going on for last two years.Five players would get 3G spectrum, including one PSU -- BSNL or MTNL -- in their respective circles.Both the PSUs have already been allotted 3G spectrum and rolled out services.The main bone of contention has been the release of spectrum by defence forces. Recently, DoT had signed an MoU with defence forces for the release of spectrum.
Telecom major BSNL is building an optical fibre network for the Air Force, which is likely to be completed by September this year. Air Force is expected to release about 45 MHz of spectrum, including 25 MHz of 2G spectrum and 20 MHz of 3G spectrum.Defence forces have indicated to release 10 MHz of 3G spectrum as the first step in three months time.