The Hindu Business Line : MNCs may be allowed to offer 3G services

Speed matters
Mobile service providers will be able to offer their subscribers high-speed data download and interactive services such as video gaming and stock trading.

New Delhi April 25 The auctioning process for the 3G spectrum is set to be announced shortly, with the Government planning to allow new entrants, including MNC players, into the segment.

The Union Minister for Communications and Information Technology, Mr Dayanidhi Maran, said that decks have been cleared for the 3G Spectrum Allocation Policy, with the Air Force agreeing to vacate 42.5 Mhz by July for civilian use for both 2G and 3G services.

"We will soon be coming out with the 3G spectrum allocation policy, which is part of the Broadband Policy... Additional spectrum will be available in July," Mr Maran told Business Line.

Mr Maran said he expected new players, including MNC telecom operators, to enter the fray for offering 3G services. The 3G (third generation mobile telephony) technology would allow mobile service providers to offer their subscribers high-speed data download and interactive services such as video gaming and stock trading.

Commenting on the TRAI recommendations on 3G spectrum, Mr Maran said, "The TRAI recommendation gives a clear opinion that 3G is not an extension of 2G... We will be following the recommendations."

On the proposed BSNL-MTNL merger proposal, Mr Maran said the issue, which was still under consideration, had been kept in abeyance to ensure both PSUs stayed focussed on the current growth agenda and their respective rollout obligations.

He said that with the Government's target of adding 250 million phone connections looking achievable ahead of this year's December deadline, the Government was planning to have 500 million connections by 2010, besides nine million broadband lines by 2007-end.

"Broadband is a priority area for us. We have set a target of nine million broadband connections this year, out of which BSNL and MTNL will do 7 million, while the rest would be done by private operators," Mr Maran said.

He said although telecom penetration was happening in urban areas, the rural areas were still not getting requisite attention. In the light of this, he added that out of the targeted 500 million connections by 2010, about one-fifth or 100 million phones would be for rural areas.

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