The Indian government has pushed ahead the dates of the 2G Spectrum Auctions. The process will now begin from 3rd February.
The re-auctioning of the 403.2 MHz of spectrum in the 1800MHz band and 46 MHz in the 900MHz band will take place in the month of February, but the process which was to begin earlier, has just started yesterday with clarifications from NIA.
The re-auctioning is one of the most crucial aspects of setting the country’s decades old GSM communications in order. The licenses & spectrums were cancelled by the Supreme Court & this re-auction will not just allow the older players to reclaim their right to operate, but could also allow any new player to join the 2G Segment. But, it is unlikely, since the communications standard has moved not one, but stages ahead in the 4th Generation or 4G.
Is 2G still relevant?
Surprisingly, despite the arrival of 4G & the prevalent 3G, 2G is still of critical importance to Indian GSM Companies. This is because 2G airwaves have the capability to offer essential & rudimentary telecommunications services like Voice & SMS to the furthest corners of this nation. In fact, in remote & volatile places like Jammu & Kashmir and North East areas, 2G has played a very important role of ushering mobile communications. And these are the precise lucrative regions that telecom companies will want to maintain 2G operations & hence will bid.
Despite the positive outlook, the government hasn’t had much success with the 2G Auctions earlier. These auctions, held in the month of March 2013 were a huge disappointment & hence the government feels a little more time may change the outlook of the telecom companies.
The government has even reserved liberal amount of spectrum. But, will existent companies change their mind?
Image Source | rediff
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