We gonna pay through our noses for 3G

Bharti Airtel has warned us that 3G mobile services will not be friendly to the end-user pockets, especially for subscribers in metros, as service providers shelled out a pretty handsome amount for the spectrum.

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The amount for spectrum that has been charged for the metros Delhi and Mumbai is close to Rs 3,500 crore each. Rs 700-900 per month is the cost an end-user will have to bear if the operator has to just break-even after the input and licensing costs, mentioned Sunil Mittal, Chairman and MD of Bharti Airtel. I do not even want to think how much it would cost post the margin for the operators.

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Bharti Airtel won 13 circles, including Delhi and Mumbai, paying Rs 12,295.46 crore, the highest among service providers.

The company could not achieve the objective of a pan-India 3G foot print as the prices rose beyond a reasonable level due to various factors like the auction format, a severe shortage of spectrum and also ensuing policy uncertainty, it had said.

And what’s next 4G?

Posted in Business, Current Affairs by Mithun Chandra at July 19th, 2010.
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