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Finally the Indian Government has decided to auction the 3G Spectrum.  The Government has decided to allow Indian as well as foreign players to take part in the bidding. The Spectrum that is being auctioned belongs to the 2100MHz band which should make it compatible with most 3G networks world over.

I believe the spectrum that is going to be auctioned should be able to hold atleast 5 Carriers. I would expect Bharti Airtel, Vodafone, Reliance to pick up spectrum. I am not sure about the foreign players, but I believe that AT&T should be able to pick up spectrum as well.

Here are some of the rules that the Government has laid for the Auction :

• Winners will be required to pay 0.5 percent of total adjusted gross revenue to the state on an annual basis for the first three years of operation, rising to 1 percent thereafter.
• Winners will not be allowed to trade or resell the spectrum and they will not be allowed to merge in the first five years after the grant.
• About 30MHz of spectrum will be sold in total.
• India will also auction licenses for broadband wireless (WiMAX) services, with the reserve price fixed at 25 percent of the amount for 3G spectrum.

The 3G spectrum is a good opportunity for equipment manufactures Nokia and Ericsson to beef up their bottom line. My only wish is that Google should enter the Auction and buy this spectrum. If it can do that and complement the 3G service with an advertising model, then I am sure it will make 3G services pretty attractive and cheap.

Keep your fingers crossed, because the 3G revolution has just begun. Also spectrum for WiMAX is being auctioned and the Indian government sees this as a way forward to Fixed broadband and to improve last mile connectivity.