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Indian Telecom Professionals

 

Will high bids for 3G services make them unaffordable for the common man?

Created by : Radha Sundaram, Sales/BD Manager, Bharti Airtel  | 04 12 2010 10:56:47 +0000
Industry : ITES / BPO / Customer ServiceFunctional Area : 3G auction(Others)
Keywords : indian telecom 3g spectrum telecom services 3g bids
Activity:  222 views;  last activity : 07 06 2010 20:18:09 +0000

The first-ever auction of the radio frequency spectrum for third generation (3G) telephony that would facilitate high-speed mobile services in India began on Friday.

As many as 11 companies, Bharti Airtel, Idea Cellular, Aircel, Augere Mauritius Limited, Infotel Broadband Services, Qualcomm, Reliance WiMax, Spice Internet Service Provider, Tata Communications Internet Services, Tikona Digital Networks and Vodafone Essar, will bid for broadband wireless access (BWA) services.

The government has set Rs.1,750 crore as the base price for a BWA slot. The Centre hopes to garner Rs.45,000 crore from these auctions.

So, will we be able to afford it??

  
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I guess we can. Since the tele services are given on mass basis the cost of usage per customer will come down & companies will be able to recover their money after some time.

It depends how fast users use the services & how fast & economically companies provide the services.
By Radha Sundaram, Sales/BD Manager, Bharti Airtel  04 12 2010 10:58:46 +0000
 
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The Govt. is in want of money after deciding to share the "3 G" spectrum to the Cos vieing for this. They are to find alternatives for our defence services / security agencies to find some other spectrum to communicate .

It appears that Telcos, as many as eleven, do not bother for the initial costs and are confident to recover the expenses from their clientile in near future. We, the subscribers are just in want of 3G in India. Let us see what unfolds.
By ASOKE KUSARI, Domestic Private Banking-Executive/Manager, A large leading PSU Bank - India  04 12 2010 18:27:20 +0000
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Telecom in india is not a monopoly market where they can charge  excess money and get away , i f u look closely each circle has got 8-9 operators and when u have this hypercompetetive market  they left with no other options but to bring the cost down and in longer run stronger operator will survive  and weaker will become prey of merger and acqiusition
By Abhijeet Kapoor, Sales Manager, ACS Technologies ltd  | 04 27 2010 14:00:49 +0000
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I guess the bidding amount should not be directly proportional to the profit the company will be making. Perhaps over a number of years, the investment can be got back, by the company. But, in this competitive mobile world prices can fall and the customers are sure to benefit from it. 
By Sampath Kumar Kannan, Sr. Developer, Aequor Technologies  | 04 20 2010 11:47:22 +0000
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yeh its really happens
By aditya dixit, MBA/PGDM student, jaipur national university  | 04 13 2010 12:30:31 +0000
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Rs. 45000 Crores!!

it is obvious that the company that wins this bid will translate this humungous expense onto their consumers. How do they justify the spend otherwise for investments?? There has to be a plan for the ROI and that, simply put, means that it will have to come from the members / consumers pockets!!

Thanks for the referral :)
By Makrand Bhave, AGM - Corporate Business, E18, part of Network 18 Group  | 04 13 2010 06:55:02 +0000
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