Will 3G services pinch your pocket?

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Will 3G services pinch your pocket?

3G services on your mobile phone will soon be a reality but will it pinch your pocket? CNBC-TV18 reports on how the government seems to be leaning towards Ratan Tata's idea of pricing spectrum.

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3G services on your mobile phone will soon be a reality but will it pinch your pocket? CNBC-TV18 reports on how the government seems to be leaning towards Ratan Tata's idea of pricing spectrum.

"Valuable things will be expensive," said Nripendra Misra, Chairman, TRAI.

That's telecom regulator Nripendra Misra on pricing of spectrum for 3G services. The Department of Telecommunications has given TRAI, the mandate to look into pricing and allocation of spectrum for 3G services.

Telecom Minister Dayanidhi Maran said that the Group of Ministers, GoM, looking into spectrum will have no mandate on pricing. It will only work out mechanism for vacating spectrum from Defence.

"45 MHZ of spectrum will be vacated by the Ministry of Defence by the end of this year," said Dayanidhi Maran, Minister, IT & Communication.

Ironically, previous regulator Pradip Baijal had earlier recommended that spectrum should not be auctioned, as it would put an additional burden on an already over-taxed industry. But Misra thinks it's time for a relook.

"Spectrum is a scarce resource so the government wants to know how to go about pricing," said Nripendra Misra, Chairman, TRAI
 
The Industry is divided on the issue of spectrum pricing for 3G services. Tata Tele Chairman Ratan Tata believes that spectrum should be priced and has even quoted a figure of Rs 1500 crores. But Sunil Bharti Mittal has vehemently opposed such a move.

"If Mr Ratan Tata has a lot of money then he can contribute to the Prime Minister's Relief fund," said a miffed Sunil Mittal, CMD, Bharti .

The telecom regulator is likely to finalise its recommendations in a couple of months after consulting all the operators.