Spectrum Marketplace Opening Shortly in IndiaHappy times ahead for operators who are crying for spectrum as auction for 2G and 4G services are going to be conducted within 1 year. Telcos are waiting for more airwaves to support their increasing customer base.

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Auction for 2G spectrum in India

It is important as Supreme Court cancelled 122 licences of some operators and asked to auction these returned spectrum. 2G auction for 800 MHz band for CDMA, 900 and 1800 MHz for GSM services is to be conducted soon. It may be that there are 2 auctions – one auction with returned spectrum from cancelled operators where incumbent players can not take part and second one with newly vacated spectrum will be open to all.

There is high chance greenfield 4G/BWA players like Reliance Infotel, Tikona and Augere may like to get 2G spectrum for voice services. Powered with 4G spectrum they will skip 3G spectrum for sure.

Auction for 3G spectrum in India

While 3G spectrum on 2.1GHz band is not coming soon, and still Defence services do not vacate 3G spectrum, it is unlikely to see auction for 2.1 GHz band for GSM- HSPA services. But it is crucial as current 3G-GSM operators have just 5 MHz spectrum with no pan India coverage and are facing huge spectrum crunch.
But there are talks to vacate spectrum on 1700-2000 MHz band. It should be noted that CDMA players are demanding for 1900 MHz band spectrum for rolling out 3G-CDMA services for a long time. I think it is high time to play justice to CDMA players.

Auction of 700 MHz spectrum – Road to Broadband

Telecom Minister Kapil Sibal is looking for auction of 700 MHz band airwaves at the end of this year. This auction is expected to be fierce one as biggies like Airtel and Aircel did not able to obtain pan India BWA spectrum and given the fact of data to be main revenue earner all operators will like to get a pie of it. This band of spectrum will provide better coverage and less infrastructural back up like earlier auctioned 2.3 GHz spectrum. It can usher the penetration of broadband in India.