The potential market for data and video services has driven as many as 11 companies to file applications to bid for the broadband wireless access (BWA) spectrum.
Separately, the Government has received applications from nine telecom companies for participating in the auction for the third generation (3G) mobile spectrum starting April 9.
Interestingly, all the top telecom players, including Bharti Airtel, Reliance Communications and Vodafone Essar, have expressed interest in acquiring both 3G and broadband spectrum.
Back-up option
“Clearly we can see that operators are looking at broadband as the next big market for themselves. Broadband growth in India has so far not picked up and operators see a lot of potential in acquiring spectrum,” says Mr Romil Shetty, Director of Telecom Practice, KPMG
Some of the players are also looking at BWA spectrum as a back-up option since its sale will be held two days after the 3G auction closes. “There are only three slots up for grabs for 3G and in case we don't win, we will look at BWA as Plan B,” says a bidder.
May push prices higher
The large number of players could push the spectrum price to almost double the base price, which is good news for the Government. But barring Qualcomm and Augere, there are no new or foreign players in the fray. Augere is a UK-based WiMax player in which France Telecom has an equity stake. Mr Sanjiv Ahuja, who was CEO of France Telecom's global mobile business, Orange, is Augere's founder.
The BK Modi-promoted Spice Group has also joined the fray for broadband spectrum and has applied for eight circles.
Infotel, a company owned by Mr Anant Nahata, scion of HFCL's Mahendra Nahata family, has also bid for BWA spectrum. Uninor and Shyam Sistema are the only players among the incumbent operators who have not bid.
Source: http://www.thehindubusinessline.com/2010/03/20/stories/2010032053920100.htm
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