3G spectrum auction soon, but no orders for equipmentJanuary 28th, 2009 - 6:22 pm ICT by IANS
New Delhi, Jan 28 (IANS) Though the third generation (3G) mobile spectrum auctions may happen anytime soon, the final rollout of services will likely be delayed in the long run. The reason: private telecom operators have not yet placed any orders for new equipment with the vendors.According to industry officials, operators are wary about committing fresh investments, which have to be firmed up on the basis of the final spectrum price that will only be known after the 3G auctions.
“Bharti and Vodafone have calculated their infrastructure requirement but have not placed any order as the companies are still waiting for the policy (auction timeframe) to be announced,” Bharat Bhatia, president of Telecom Equipment Manufacturers Association of India (TEMA), told IANS here Wednesday.
“Telecom operators do not have an idea how much the spectrum will cost and probably that is one of the reasons why they are refraining from placing orders,” he said.
Echoed Sandeep Bhargava, corporate affairs head (Asia and Pacific region) of Nokia Siemens Networks: “The spectrum pricing is a major concern for all telecom operators and this is certainly deterring them from placing any order in advance.”
Nokia Siemens Networks is the telecom equipment manufacturing arm of global mobile handset manufacturer Nokia.
According to Bhargava, delivery of equipment, which will have to be imported, “typically” takes between eight to 12 weeks. The equipment includes telecom switches, optical fibre cables, and equipment needed for base stations.
Any delay in placing orders is likely to delay the rollout of services as well, though there is no deadline for rolling out 3G services.
Players eyeing the second generation mobile segment are in a similar situation as well. An industry official, requesting anonymity, said even new operators like Swan Telecom and Unitech Wireless have not placed any order with equipment vendors.
The official said these operators lacked the necessary funds needed to purchase the equipment required to put in place the infrastructure for the rollout of services.
Norwegian telecom major Telenor, which is in the process of completing acquisition of a 60 percent stake in Unitech Wireless, has announced it will infuse funds using a combination of internal resources and debt.
Both Swan and Unitech had received licences for second generation (2G) mobile telephony last year. However, neither has rolled out services so far despite the spectrum being allotted to them.
- Was told telcos sold stake to finance roll-out: PM - Feb 16, 2011
- Sibal launches 4G, admits 3G has 'not successful' (Lead) - Apr 10, 2012
- Ahluwalia defends Swan, Unitech on stake sale after spectrum allocation - Jan 16, 2011
- Nokia Siemens Networks expands capacity - Aug 10, 2011
- Airtel deal with Nokia Siemens for expansion in Africa - Sep 29, 2011
- India to have 400 million 3G connection by 2015: Study - Mar 08, 2011
- Officials told Raja to auction 2G airwaves, court told - Apr 10, 2012
- India's telecom equipment industry grew 18.6 percent last fiscal - Jun 10, 2010
- Huawei to manage Bharti Airtel's 4G network in Karnataka - May 01, 2012
- Unitech managing director being questioned - Feb 15, 2011
- Older players should be invited for 2G auction: Vodafone - Feb 15, 2012
- Bharti Airtel to launch 4G services in Kolkata - Apr 03, 2012
- Finnish mobile software firm to launch Bangalore operations - Jul 10, 2010
- Sibal to launch Bharti Airtel's 4G services Tuesday - Apr 09, 2012
- Ericsson, Nokia and Huawei to partner Bharti's 3G roll-out - Sep 20, 2010
Tags: 3g services, anonymity, bharti, corporate affairs, equipment manufacturers association, final spectrum, industry officials, jan 28, nokia siemens networks, oper, optical fibre cables, private telecom operators, rollout, second generation, spectrum auction, spectrum auctions, telecom equipment manufacturers, third generation, unitech, vodafone