India 3G plan may be delayed on finmin hurdle - report

NEW DELHI (Reuters) - India's plans to launch third-generation (3G) mobile services could be delayed as the finance ministry has objected to the guidelines announced without its consultations, two newspapers said on Thursday.

The telecoms minister had announced a global auction process for allocation of 3G spectrum on Aug. 1, that would enable operators to provide facilities like fast Internet access, video calls, games and a host of multimedia content on cell phones.

He had expected the auction process to be completed by December, while operators hoped to launch the services in 2009.

The Economic Times and the Business Standard newspapers said the finance ministry had raised objections, saying it had not been consulted before issuing the guidelines when it was mandatory for all other government departments to consult it on all issues that have financial implications.

"The issue of (3G) guidelines, without any consultation with the finance ministry, either within the forum of Telecom Commission or outside, is inappropriate and contrary to the cabinet decision," the Economic Times quoted Finance Secretary D. Subbarao, as saying in his letter to the telecoms ministry.

Subbarao was referring to a cabinet decision last year that spectrum price would be mutually decided by the telecoms and finance ministries, the newspaper said.

A finance ministry spokesman could not be immediately reached for comment.