DoT favours additional players for 3G services

The Department of Telecommunications (DoT) is likely to allow additional players, including foreign ones, in 3G telecom services in a bid to increase revenues from spectrum auction and to increase competition.
 
DoT is all set to reject sector sector regulator TRAI's revised recommendations that only existing telcos be allowed to bid for 3G spectrum.

DoT is expected to announce a new set of 3G guidelines by the month-end, which will allow for international competitive bidding for allocating spectrum for 3G mobile services, sources say.

DoT is expected to finalise the guidelines after consulting the Prime Minister's Office (PMO). It may also look at the legal ramifications of a global auction before making a stance, sources added.

Last month, TRAI had rejected DoT's proposal to reconsider allowing foreign players to offer 3G telecom services, with the regulator saying existing players would be able to roll out network faster.

"As the existing licensees have already made huge investments in infrastructure and their systems are in place, therefore, they will be in a better position to deliver 3G services efficiently at low incremental cost," TRAI had said in its views on permitting new entity for 3G services.

TRAI chairman Nripendra Misra also had cautioned the finance ministry over the entry of foreign players.

DoT is likely to announce final guidelines on 3G telecom services, including number of players who can participate, in next 10 days.