India to Offer 3G Licences in Q1 2006

November 30, 2005 - source: BWCS

Dayanidhi Maran, India's Communications and Information Technology Minister said yesterday that the government will allocate 3G spectrum by the end of the first quarter of 2006. However, Maran, speaking at the Indian Economic Summit, did not give any details as to how the new licences would be awarded.

Telecoms operators in the subcontinent have been anxiously awaiting a decision on next generation mobile phone spectrum for some time now. According to the Communications Minister the first priority in India should be to increase the country's low telephone density from its current level of 10% to around 22% within two years.

While he did not outline any concrete proposals it is thought that the government favours a competitive market for 3G services and is likely to grant several new licences. The Indian government recently raised the foreign direct investment limit in the country's telecom sector to 74%.