Government likely to invite foreign companies for 3G services

25 Apr 2007

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Mumbai: With an additional 42.5 MHz spectrum set to become available for third generation mobile telephony (3G), the government has indicated that it is open to issuing licences to foreign companies as well.

"I want foreign telecom operators to come in 3G services to make it interesting for the subscribers and introduce competition in the service. Additional spectrum will be available by July and the Department of Telecom (DoT) will soon come out with a 3G spectrum allocation plan," telecom minister Dayanidhi Maran said.

The minister, however, refused to comment on issuing licences to prospective players for offering 3G services. "Wait for the plan to be announced," he said, adding, "We are confident that our project with the air force will be completed by July and we will be able to release 42.5 MHz of spectrum available for 2G (currently available) and 3G services. We will be coming out with 3G spectrum allocation plan soon."

Spectrum is key to voice and data services in mobile telephony.

"3G is a part of Broadband policy. When we announce the Plan, we will have spectrum from the defence with us to give the operators to start the service immediately", he said.

He said the government will abide by the recommendations of the Telecom Regulatory Authority of India (Trai) on 3G spectrum.

"A group has already examined the Trai recommendations and we feel that 3G is not the extension of 2G. We will follow the system of Trai''s recommendations because Trai has given very good suggestions".

Meanwhile, the wireless services subscriber base at the end of March this year stood at 166.05 million as compared to 98.78 million in the same month last year, registering a growth of 68 per cent.

The month saw addition of 3.53 million wireless subscribers as against 6.21 million in February this year, figures released by Trai said.

''''This lower growth in March can be attributed to insistence by the government to ensure verification of subscribers,'''' the telecom regulator said.

In the wire line segment, a total of 0.40 million subscribers were added during March''07 as compared to a decline of 0.02 million in February''07.

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