Bharti to invest $1 billion on 3G

May 8, 2005

India's Bharti Televentures said it would invest $1 billion on the rollout of 3G mobile phone networks across the country. The company is already running tests of 3G technology at some places and vowed to provide coverage to all of India.

"We have to ensure that 3G does not remain a niche technology. It must not be confined to a particular section or geography," said Bharti Televentures Managing Director Akhil Gupta.

Licenses for operating 3G networks have yet to be awarded in India but Gupta believes the licenses should come with stringent rollout obligations.

"Strict rollout obligations backed by bank guarantees should be set for operators so that the technology spreads," he added.

Government-owned Bharat Sanchar Nigam is also planning to rollout 3G networks. "Our next rollout will have provision of 3G services throughout the country. We have the equipment and are waiting for the spectrum to start the tests," BSNL Chairman and Managing Director A K Sinha said.

Meanwhile, The Telecom Regulatory Authority of India (TRAI) announced that it plans to propose a zero entry fee for the IMT 2000 spectrum for existing operators. The move aims to reduce the cost of offering 3G services.

TRAI may even reduce the annual spectrum fee payable by all Indian mobile operators, currently standing at a maximum 6% of all revenues.