The Department of Telecommunications or DoT has finalized the much-awaited policy for 3G services permitting new international telecom firms with experience in this field to bid for 3G license. The policy is in sharp contrast with telecom regulator, TRAI, who has suggested that only incumbents should be allowed to bid for 3G licenses, the media reported.
The move, however, opens the doors for the overseas companies, who have no presence in India, to enter into India's rapidly growing telecom market and to offer consumers enhanced voice, data and video services, the report stated.
DoT reported to have indicated that it is also doubling the reserve price for auction recommended by TRAI in 2006 from around Rs.1,400 crores for an all-India license. The adjusted revenue share to be paid after one year is also being raised to 1% from 0.5%.
The 3G policy, however, has to be cleared by Prime Minister, Manmohan Singh, with whom Communication Minister, A. Raja, has held several meeting in the last few months.
The 3G policy gained importance because it would contribute around $10 billion to $12 billion (Rs.43,000 crores to Rs.52,000 crores) to the Indian Government exchequer.
The reserve price for bidding has been nearly doubled from Rs.80 crores in Delhi and Mumbai, Rs.40 crores in Kolkata and Chennai and Rs.15 crores in other cities, the release stated.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.