India’s 3G Auction: Winners, Losers, and the Also-Rans

Author: Bhavya Khanna, Research Analyst, Wireless

Published: 25 May 2010

After 33 days of bidding, India’s 3G auctions finally concluded on May 19th, surpassing even the most optimistic government revenue projections. While the bidding could net the exchequer a cool $15 billion, it did not produce a pan-India license holder. The biggest winner Bharti Airtel was only able to secure spectrum in 13 of India’s 22 telecom “circles” (the term for regions of service). Vodafone, paying $2.5 billion – $100 million less than Airtel – only secured 9 circles, but unlike its competitor picked only higher revenue potential circles that account for two-thirds of its current revenue base. The end result is that Airtel, Vodafone and Reliance are all evenly matched in terms of their abilities to sign on 3G subscribers. Who benefits?

The full text of this Insight is available to subscribers of the Mobile Operator Strategies Research Service and the Mobile Networks Research Service and the Asia Intelligence Research Service.

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