After weeks of dillydallying, it now seems that new communications minister A Raja could allow foreign telecom companies to enter the 3G space in India. Wait a minute, the Business Standard article says he is likely to opt for a global auction for 3 G licenses. So there’s a chance it may not happen. Anyways, going with Business Standard’s optimistic tone, the global auction is aimed at attracting more foreign companies and sizeable investments to the market.
Former telecom minister Dayanidhi Maran had plans of inviting global bids for 3G, following which some Indian cellular operators threatened to go to court. In what is more bad news for the Indian cellular companies, the telecom department is considering levying a one-time fee on existing operators for the additional second generation (2G) spectrum they have been allotted over the years.
With Raja’s contemplating quitting following former minister Maran’s allegations of corruption in the tendering process of Bharat Sanchar Nigam, we can just hope that the muddle regarding 3G policy and inclusion of foreign telecom operators for the bid clears soon. Of course, it remains to be seen if any foreign telco will want to participate at all in the bids with so much confusion and delay in policy making by the ministry.
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