Global operators plan to stay out of 3G auction ring (India)A closer look at the at the Indian 3G auction guidelines has made the global telecom operators to think twice before making any further progress. Many potential new entrants are now planning to stay out of the bidding ring, reports ET.
The response for the 3G auction has been degraded to “negative” as the implications it carries of steep financial and regulatory barriers, coupled with pockets of uncertainty for the bidders, sink in.
Till now, operators like NTT, AT&T, Deutsche Telecom and Etisalat who were showing interest in the Indian mobile market are now showing their absence in the bidding ring , has threatened to affect government’s plans of netting up to Rs 40,000 crore from the auction of 3G spectrum.
The global telecom operators have listed four key reasons forr their negative responses:
* They describe as an “unjustifiable, discriminatory and burdensome payment” of Rs 1,651 crore to first obtain a unified access service license.
* The second reason is the mindless application of April’s M&A guidelines to 3G licences
* The third concern is on the account of uncertainty of 3G spectrum allocation beyond 5 MHz. A 3G bidder can neither bid beyond a single block of 5 MHz nor acquire 2G spectrum.
* Lack of clarity on several areas critical to bid planning, such as number of blocks per circle, timing of auctions, interim steps and rules regarding transfer and sharing of spectrum.
