TRAI suggests 3G auction base prices

NEW DELHI: India's telecoms regulator recommended base prices on Wednesday for an auction of 3G spectrum for high-speed mobile phone services ranging from 150 million rupees to 800 million rupees.

India is the world's fastest-growing mobile services market, but has been starved of operating frequencies as vast swathes of spectrum are occupied by the defence services.

The top end of the price band buys spectrum in the so-called category A telecom circle, which includes the cities of New Delhi and Mumbai, India's two largest telecom markets.

A base price of 400 million rupees is recommended for category B, which includes the smaller cities of Chennai and Kolkata.

Spectrum in the remaining category C circle will go for at least 150 million rupees, the Telecom Regulatory Authority of India (TRAI) told reporters.

TRAI said the recommendations were now with the telecoms ministry, which would decide the timing of the auction.

In each circle, operators will bid for one of five blocks of 2x5 MHz each in the 2.1 GHz band, TRAI said. The highest successful bidder will get to choose the frequency block with the least interference and the widest reach.

All other successful bidders will have to pay a price at least 75 percent of that of the highest successful bidder.

Other blocks will be available in the 450 and 800 MHz bands.

The chairman of Bharti Airtel Ltd., India's top mobile services provider, said on Wednesday he welcomed the recommendations.

"(It) seems to be a good healthy middle ground - it's a holistic policy," Sunil Mittal told reporters. "The regulator has not hit us with a very high charge. It has been judicious."

He said Bharti would be ready to start 3G operations within six months of a licence being granted, and expected network expansion in rural areas would be done through 3G.

India's telecoms minister, Dayanidhi Maran, said earlier on Wednesday he expected 3G services would be launched by the second half of 2007.