9 players to bid for 3G, no new entrants in fray

NEW DELHI: Nine players will participate in the auctions for pan-India 3G spectrum, which will begin on April 9. In addition, the department of telecom has received 11 applications to participate in the auctions of broadband wireless access (BWA) spectrum, making for a total of 20 applications. Predictably, the 3G auctions have attracted only existing 2G players -- Aircel, Bharti, Etisalat, Idea, Reliance Telecom, S Tel, Tata Teleservices, Vodafone and Videocon Telecom -- with not a single new entrant, global or Indian, in the list. TOI was the first to predict, way back on August 12, 2008, that new players would probably stay away from the 3G auctions after the auctions were first announced. Even after the guidelines were revised for the 2010 auctions, the barriers for new entrants remained unchanged. The absence of global bidders is likely to ensure that the bidding will be conservative, and probably lower than the ambitious Rs 40,000 crore revenue target first announced by telecom minister A Raja. The BWA list has four new players -- Augere, Tikona Wireless, Infotel Broadband Services and Qualcomm -- while Spice is making a comeback into the telecom space. Infotel belongs to Anant Nahatta, the son of HFCL owner Mahendra Nahatta. It could not be confirmed if these are all pan-India applications or if players will eventually bid only for select circles. DoT is meeting at 11.30am on Saturday, March 20 to screen the applications. "We will check to see if the applicants meet the licence criteria. For example, no company can hold more than 10% in another applicant company," a senior DoT official told TOI.