BSNL would remain the biggest 3G provider

State owned Bharat Sanchar Nigam (BSNL) would remain the biggest pan India 3G services provider, even after the launch of services by private operators. Except in Delhi and Mumbai, where Mahanagar Telephone Nigam (MTNL) operates; BSNL has 3G license for all the telecom circles.

It's almost apparent that none of the telecom operators, who are bidding for 3G licenses, will win a pan India license, keeping in view the stiff competition and limited number of slots on sale in every circle.

Only three slots of 3G airwaves in seventeen telecom service areas and four in other five circles are auctioned. Only two slots would be auctioned in the country for BWA.

"Each of the telecom operators participating in the bid would put their best foot forward. All of them will try to win at least licenses of a few circles to brand themselves as a 3G services provider. As the number of telecom licenses are limited, possibility of one player winning license for all the circles becomes thin," said a senior official of a leading telecom operator bidding for 3G licenses pleading anonymity.

Vodafone Essar, Bharti Airtel, Idea Cellular and Aircel are running short of spectrum to run their services. These operators, having big bucks will leave no stone unturned to win the 3G licenses. Mullah would be another factor which would throw spanner in the plans for 3G licenses. Besides, business viability of 3G spectrum in all telecom circles is also a big question. The government has fixed the base price of pan-India 3G airwaves at Rs 3,500 crore and BWA at Rs 1,750 crore due on April 11, 2010.

akhileshs@cybermedia.co.in