Blog Post

COAI offers Rs. 300 Crore For 3G; Is 3G worth it?

Negotiations over 3G continue: The Cellular Operators Association of India (consisting mostly of GSM players) has offered Rs. 300 crore as licence fees for a 5MHz bandwidth for 3G services. TRAI had mentioned that Rs. 85-120 crore is the international price. But what they didn’t mention was that 3G isn’t all that successful everywhere: Operators in Europe paid too much money for 3G spectrum, and even companies who got it free dont think it is commercially viable. In Finland, operators have had 3G handsets subsidised because no one was buying them. In the US, Verizon, Sprint and Singular have spent a combines $10 Bn on establishing 3G networks. But there is hope; from MocoNews: