Regulatory clarity is one key step in ensuring

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Unformatted text preview: with an established infrastructure may act as a deterrent for the entry. Metros and Circle A are likely to be keenly contested in the auction and have chances of witnessing aggressive bidding. ► • Regulatory clarity is one key step in ensuring competitive interest in the bidding process, from incumbents, new domestic entrants and international entrants. ► • Spectrum remains a key issue in the auctions. There are a few Circles like West Bengal, Delhi, Gujarat that have between 2 and 3 slots of spectrum including one reserved for BSNL/MTNL. Only these slots will be auctioned in the first round. Vacating of spectrum by the Indian Armed Forces, is a key determinant to when operators can start rolling out services in these circles. Globally, 10MHz to 15MHz, i.e. 2 to 3 carriers have been awarded in 3G auctions, in India, it will be a single 5 MHz carrier. In the case of WiMax, there are concerns on the contiguity and interference levels of the spectrum bands. ► • Clarity on spectrum charges, i.e., whether it is to be calculated on total versus incremental AGR, or if it is different rates for incumbents and the new entrants will also have to be resolved before the auction. ► • WiMax spectrum in the 2.3 and 2.5 GHz (four slots of 20MHz)is likely to be auctioned before 3G. The reserve price, which was initially 25% of the 3G reserve price in each circle category, was doubled to 50%. The removal of “data only” from the services, implicitly gives successful bidders the option to provide voice services on WiMax. However, the business case for mobility based voice on WiMax remains to be proven globally. India 2012: Telecom growth continues 17 Key drivers for adoption of 3G and WiMax in India ► Regulatory clarity ► ► Improved data speeds backed by superior content ► ► ► Affordable services ► Affordable handsets/customer premise equipment ► ► Availability and contiguity (WiMax) of spectrum �Spectrum fee for 3G (incremental vs. total), Broadband Wireless Access (BWA)for existing players Foreign players timing of joint venture formation �Improved data speeds providing enhanced user experience �Customized, vernacular and compelling content catering to the interest of the diverse masses �Affordable data and voice pricing plans leading to higher adoption levels �Afforda...
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