India may auction 3G spectrum for operators

A Hindu holy man is seen speaking on a mobile phone in Siliguri in this August 24, 2007 file photo. India will allow all players, including foreign firms, to bid for 3G spectrum if the government decides to go in for an auction, a senior government official said on Tuesday.

NEW DELHI (Reuters) - India will allow all players, including foreign firms, to bid for 3G spectrum if the government decides to go in for an auction, a senior government official said on Tuesday.

"The other option is to allot (spectrum)... for which we have worked out a criteria," Telecoms Secretary D.S. Mathur told reporters on the sidelines of a conference.

The Telecom Regulatory Authority of India (TRAI) has recommended auctioning of 3G spectrum, unlike the process for 2G where spectrum was allocated to operators based on their subscriber numbers.

Mathur said there was enough 3G spectrum to accommodate three to four operators.

India is the world's fastest growing mobile services market, adding about 8 million subscribers a month, led by Bharti Airtel and Reliance Communications.

The growth has attracted foreign players such as Britain's Vodafone, which paid $11.1 billion for a controlling stake in Hutchison Essar this year and renamed it Vodafone Essar.

Around 30 firms have put in 300 applications for licenses to provide telecom services in some or all of the 23 zones that make up the Indian wireless map.

They include global majors like AT&T Inc and domestic firms such as real estate developer DLF and the Videocon Group.

India's telecoms minister said on Tuesday he expected a government panel to soon submit its recommendations on guidelines to review applications for providing telecom services.

"The problem is having received applications, I cannot switch over to other modes or guidelines or criteria. The existing criteria will apply," Andimuthu Raja said.

TRAI has recommended no cap on the number of service providers in any zone and auction of spectrum.