3G basket open to foreign firms: Raja

The long wait for 3G spectrum is finally over with the auction starting on Friday. CNBC-TV18's Siddharth Zarabi caught up with Telecom Minister A Raja to know the details of 3G auctions.

CNBC-TV18: Earlier there was this sense that a lot of foreign and domestic companies will come for 3G auction. Now when we look at the bidders there are nine bidders and all of them are already in India. There are one-two new operators also and then the large Indian companies are there. So some critics say that the policy was not correct and that is why the foreign companies stayed away, what do you have to say about that?

A Raja: I do not know where they are standing. When the recommendation came to me and the department saying that 3G spectrum should be auctioned and what will be the slot and amount of the spectrum, no criticism or no suggestion was made. So the only question arose was how many slots are going to be auctioned. When we decided that three-four slots can be auctioned suddenly you cannot make criticism that the policy that is devised by the Government is not correct.

They are having their own inability or business viability. Whether they come to India or not that is their own wish. One thing must be noted that whether it is Indian or the foreign operator, the policy of FDI is always there.

The basket is open for them to come into the picture through the local operator to have 10-20 per cent. Airtel, Aircel and Vodafone have diluted their shares to foreign companies. This means that the other gate is open.

CNBC-TV18: You mentioned the issue of slots. Now currently there are three slots and in some circle four slots. Is it the final round of 3G auctions or will more be expected in the future?

A Raja: That has to be decided by Telecom Regulatory Authority of India (TRAI) because National Telecom Policy is categorically saying that the number of operators in the service area whether it is 2G or 3G will be periodically reviewed by the TRAI. As a Minister, I can suggest that once service is started by this companies if it is needed we can go for more or we can consolidate the industry because even few months back some of the representations I received that we want more spectrum to have an effective and clarity in the system.

There is hue and cry by some companies that this five Megahertz may not be sufficient to have the full rollout. In such a case additional spectrum can be considered as per the TRAI recommendation when it is referred to the TRAI. We have to assess how much spectrum can be put up for future growth at the industry those who are going to get 3G spectrum now.

CNBC-TV18: In your assessment as a Minister, I know there is a formal process, as initial estimates how much additional 3G spectrum will be available in the future and how many more slots can be auctioned?

A Raja: The question is bit hypothetical because I cannot foresee how many slots can be auctioned. Only thing is once the government decided that we are going for four slots, well being of the four companies must be taken into consideration in terms of commercial viability and technical feasibility.

Once they have bided huge amount and invested huge money for rollout of the system, they should not feel that the spectrum which was allotted to them is meager or insufficient. It will be taken care of by the Government offering full technical assessment and if it is necessary government will give them more spectrum for them and according to the technical assistance, it will be given by TRAI.

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