Lot of conflict has been surrounded with introduction of 3G network for main cities of India. After a prolonged speculation, both finance and telecom ministries have decided to launch the auction involving the main players in wireless. The reserve price for the bid is fixed at whooping 4040 crore rupees. The government is estimating the bid to close out at 1.5 billion dollars, which is approximately 7050 crores for each wireless. The government has delayed the 3G rollout due to elections and controversies but is now ready and expecting to win big amount by the auctions whereby they can level the fiscal deficit for this year.
The hard time will be on??
Certainly not on the government after explaining the facts above
If you think that will be the providers bidding high, then its wrong. They are not going to be losers. But arranging huge amount for a given period of time is little risk taking, considering the facts like capital, infrastructure, advertising costs, launching 3G, revising their deals with phone manufacturers, media, investors, state governments and the list goes on. This again affects the length of time that common indian can experience the 3G in his life. Big cities will be the first to experience high-speed internet on the go.
I know you would think the consumers are gonna suffer the price blow. Ofcourse it would be the consumer who will bear the burden of price fixed by the provider. If the provider doesnot want to incure losses, their price would definitely be high. But considering the cellular revolution in India since few years and because of the omni-present-tech-saavy new generation, 3G would be a grand hit.
Price would definitely be an offset in embracing 3G in India intially, but i am sure it wont be the same for long!