The Department of Telecommunications (DoT) will soon initiate a region-wise bidding process across 22 telecoms circles where the lowest bidder would get support to roll out wireless services in rural areas, according to reports.
A similar amount will be extended to Bharat Sanchar Nigam Limited (BSNL) to ensure that a minimum of two players provide services in these areas. Funds are to be sourced from the Universal Service Obligation Fund (USOF) for this initiative. If no bids are received, BSNL will be awarded that contract for the circle at a benchmark rate.
A total of six companies had emerged successful in the 3G auctions. While Bharti Airtel, Reliance Communications and Aircel had bagged spectrum in 13 circles each, Idea Cellular won spectrum for 11 circles, Vodafone-Essar and Tata Teleservices Limited won nine circles each and new entrant S Tel won three circles. In sum, these companies had shelled out close to Rs 680 billion for these airwaves.
The government also obtained Rs 385 billion in the broadband spectrum auctions that followed, where Reliance Industries Limited (RIL)-owned Infotel won the bid for all the 22 circles. While Bharti Airtel and Qualcomm won in four circles, Tikona won in five circles. BSNL and Mahanagar Telephone Nigam Limited (MTNL) had been given 3G and wireless broadband frequencies well ahead of the auctions and had to pay equivalent of the winning bid in each circle.
It is believed that the successful bidders would be given the option of deploying any technology of their choice. Bidders would have to ensure a minimum internet speed of 512 kbps, which can be scaled to 2 Mbps, and provide a contention ratio of 20:1 or higher. This is the second major project on a national level to be funded from the USOF.
