India to allow foreign players

A committee of Department of Telecom has given its clearance on entry of foreign players in offering 3G mobile services and allocation of spectrum through auction, says highly placed sources.

The group, which is looking into recommendations of telecom regulator TRAI on 3G spectrum, will submit its report to the Telecom Commission later this month for making policy and guidelines on 3G spectrum. It has so far finalized two things -- that 3G is not an extension of 2G, implying that there is price to be paid through auction for spectrum to start 3G services, and entry of foreign players, official sources said. Other issues including allocation of spectrum to public sector undertakings and pricing criteria are also being worked out, they said.

3G services allow operators to offer advanced data service like video streaming, high speed internet, real-time transactions and voice services. At a time when voice revenues are falling, high-end value added services through 3G hold big potential for Telcos to arrest the top line fall.