Price of 3G and BWA spectrum

As the excitement generated by the EGoM decision to increase the reserve price for 3G and BWA spectrum dies down, thoughts have turned to the fairness of pricing. As expected, both COAI and AUSPI are unhappy at the increase in the price (from Rs 2020 crore, set last year). On the other hand, the WiMAX is pleased with the price for BWA spectrum. Given the current economic climate, it is yet to be seen how many operators will bid for the spectrum. It is likely that all the big boys will be in the ring for 3G spectrum in light of the 2G spectrum crunch. However, using 3G simply to augment voice capacity does not sound like a viable strategy when the price of spectrum is so high. The situation with BWA is not that clear yet.