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 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.