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Monday, August 25, 2008

Foreign investors face hard math on Third Generation entry

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Third generation (3G) services, which provides for faster data download and video streaming, would be a tough call for foreign telecom firms as the investment would not make economic sense for them.

The new players would have to invest upwards of Rs 17,000 crore to support a measly customer base of 50 lakh.

Since they would have to provide voice and data on a 2.1 GHz spectrum, the quality of service would also suffer.

Though none of the global telecom firms were willing to come on record, they expressed such concerns off the record to FE.

This is how the numbers work: Any global telecom player with experience in 3G services, if gets the 2.1 GHz spectrum through the auction, would first have to acquire a mandatory universal access service licence (UASL).

To read the full article, click here..
To read the ePaper, visit: http://epaper.financialexpress.com

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