TRAI announces 3G service norms, allows foreign players

New Delhi: Two private players will be allowed to bid for 3G spectrum in Delhi and Mumbai.

Government today announced guidelines for roll out of next generation (3G) mobile service and Mobile Number Portability that allows cell users to switch operators without changing numbers - conveniences that will enhance the wireless telephony experience.

A maximum of 3 operators will be allowed in Delhi and Mumbai, MTNL gets one slot, 2 are open for private bidding. The spectrum will be open to international bids. Auctions will be complete in 2 months.

"We have about 60 MHz of spectrum available with us. Except for Delhi and Mumbai, at least 2-5 operators can be accommodated right now in many circles while in others it will depend upon the availability of radio waves in the near future," Telecom Minister A Raja told reporters here.

Announcing the policy, Raja said that there would be global auction for 3G spectrum and all players having Unified Access Service (UAS) license or those eligible for the license would be allowed to participate in auction.

The reserve price for a 2x5 Mhz block of spectrum for Mumbai and Delhi and category-A shall be Rs 160 crore and for Kolkata and category-B, Rs 80 crore and for category-C Rs 30 crore.

Spectrum for pan-India license would cost at least Rs 2,020 crore.

According to estimates, the government can garner between Rs 30,000 crore to Rs 40,000 crore depending upon the bids. 3G services will give users a better multimedia experience, with faster data transfer rates. At present, cellular operators offer only 2G services.

The minister said that the process for spectrum auction would begin in next 15 days and an independent agency would be appointed to supervise the spectrum allocation to ensure full

transparency.

For the Mobile Number Portability, also released by the government today, proposes dividing the country into two zones for implementing the scheme that is prevalent in most mature telecom markets.