3G spectrum Auction in January

The United States is asking India with lots of questions on key policy issues in the telecom sector as the
country gears up to auction 3G mobile phone spectrum, which will allow services such as high
-speed internet and video-conferencing etc...Among the queries raised by the US Telecommunications
Sub-committee is whether India will change rules to allow foreign companies to bid for 3G
spectrum as 100% foreign entities. The panel also wants to know how much time foreign players
will get to find an Indian partner if their bids are successful.

India will auction 3G spectrum in January. US telecom firms such as AT&T and Verizon, which
have been trying to enter India for the past two years, are not present in the world’s
second-largest market for wireless services with more than 300 million subscribers. The
American contention is that the current 3G policy does not favour the entry of new foreign
players.Existing regulations don’t allow foreign telecom companies to hold over 74% in their
Indian ventures. So, a 100% foreign-owned entity entering the Indian telecom market must
find an Indian partner to hold a 26% stake in the joint venture.