According to Network World, the Indian government plans to auction off three WiMax spectrum licenses in the country in December. 10 days before the WiMax auction, the government will be completing the issue of three 3G licenses. The bid for the 3G spectrum starts at $716 million per operator and at $360 million for the WiMax spectrum.
The licensing of 3G mobile-phone services and fixed wireless broadband (IEEE 802.16d WiMax standard) services will make India about $5.1 billion, India’s IT/ Telecommunications Minister, Andimuthu Raja said. “Since the number of slots are only four, the auction price will be more,” Raja stated and he has a good point. Given that the auctions are open to foreign companies, there will likely be intense competition to win the licenses among the local operators and foreign giants such as NTT DoCoMo, AT&T and Deutsche Telekom, skyrocketing the prices into the billions.
The Indian government already handed out 3G licenses to the state-owned service providers Bharat Sanchar Nigam and Mahanager Telephone Nigam, in early 2009. India is the second largest wireless market worldwide with 415.25 million current subscribers according to figures from c. Nevertheless, most of it comes from mobile voice and SMS function rather than from wireless Internet access.
The WiMax Forum predicts that India will comprise 20% of the WiMax market (or 19 million subscribers) in 2012. The Economic Times of India reported that a study by US market research firm Strategy Analytics believes India will become the largest WiMax user base in the Asia-Pacific by 2013, reaching 14 million by 2013 and growing annually at 130%. With these forecasts, the future looks bright for the four companies that will win the WiMax spectrum. Taking into consideration a population of one billion, it may be one of the greatest ROI currently offered in the global market.… Read the rest