3G in India by mid 2009

With the Government issuing guidelines for 3G, high speed mobile downloads and live television on mobile will finally become a reality by middle of 2009. But customers in Delhi or Mumbai may not have much to look forward to.

Due to spectrum constraints, there are merely three Global System for Mobile (GSM) operators that can offer 3G services. With one slot already reserved for MTNL and the other two open for global bids, customers in Delhi and Mumbai may end up missing the 3G bus if they don’t switch operators.

But customers in Tamil Nadu, Karnataka and Kerala could have as many as 10 operators to choose from.

"Subject to the availability of 3G spectrum, we will have five operators to start with and gradually we may go up to having ten operators. In Mumbai and Delhi, however, we can only have 2-3 operators,” Communications and IT Minister D Raja said.

Even private GSM operators admit that limited spectrum will lead to overbidding and could render 3G services unaffordable.

"If there is a supply constraint and demand excess, obviously there will be overbidding, which could make 3G very expensive in Delhi and Mumbai," Director General, Cellular Operators Association of India (COAI), T V Ramachandran cautions.

But analysts say it is unlikely that the big GSM players like Airtel and Vodafone will not bid aggressively to ensure they get 3G spectrums, primarily because most customers with an appetite for 3G are locked in the two networks.