Tuesday, April 15, 2008

BSNL, MTNL Ahead In 3G Spectrum Race

The government is contemplating allocating 3G spectrum to state-owned Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) ahead of others, but in the process might displease private players.

This decision is likely to upset the private players as it would give BSNL and MTNL a head-start in rolling out 3G services. Earmarking one block of 2x5 Mhz spectrum in 2.1 Ghz for allowing import of WCDMA equipment is being considered separately based on justification provided by BSNL. The Telecom Commission, in its meeting in June 2007, had agreed that besides BSNL/MTNL, other service providers may be selected through e-auction for allotment of spectrum for 3G services in 2.1 Ghz band. 3G helps in transmission of both voice data (a telephone call) and non-voice data (such as downloading information, exchanging e-mail, and instant messaging). It would offer data-intensive services through wireless communications.

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