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After introducing 3G in the Indian telecom market, the government of India will be holding auction for 4G mobile spectrum. 4G is an extremely high speed internet network and the plans to hold an auction for it were made public on Wednesday. The sale process will start after telecom operators bring out their 3G service by the end of this year.
Government is expected to earn more than Rs. 350 billion from current 3G auction and BWA (Broadband Wireless Spectrum) auction which would follow the 3G auction. The auction process for 3G has started on April 9th, 2010 but can take weeks for completion.

4G is expected to bring broadband like speed to cell phones which would allow users to receive TV broadcasts and play online games at a speed that is almost 10 times faster than on 3G. Communication Minister A. A. Raja said “I do not want any delay in 4G services. We should be with the rest of the world in 4G.”

Europe is also gearing up for this technology as Germany becomes the first European country to hold an auction for 4G frequencies.

Raja feels that the telecom bidders who win the auction of 3G spectrums would start launching their 3G networks as soon as they receive the spectrum, which will be allocated in September this year. 3G spectrum will lead India into a new era of internet by giving the ability to surf internet from mobile phones to millions of people who don’t have access to computers.

The introduction of 3G is also expected to heat up the competition in mobile market, to get more customers. The consulting process for 4G spectrum sales has already started by Telecom Regulatory Authority of India (TRAI).
Raja said, “Once TRAI submits its recommendations, the government will work on it.”

These comments have come after the government of India finalized 22 rounds of auction for sale of 3G spectrum. On fourth day of the auction, i.e. Tuesday, one of the bids for pan-India 3G licence has gone up to a whopping Rs. 45.8 million, which is 31% more than the reserve price, set up by the government. Due to a public holiday, bidding was not open on Wednesday.

The names of the winning companies will be declared after the auction is finished and approved by government.

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