Search the Internet          Tips  Sites: Finance, Investment

India to open fourth cellular licence bids on July 11

India will open on July 11 financial bids from six telecom firms who had bid to offer mobile phone services in 21 telecom zones, the government said on Monday.

Late last month, the government received 57 bids from seven companies for the right to be the fourth cellular operator in the country's 21 telecom zones. Subsequently, one firm withdrew its 15 bids after failing to meet qualifying conditions.

"In respect of these withdrawn bids, financial bids will not be opened...bank guarantees in respect of these will be returned," a government statement said.

The bids are being auctioned by the government to boost competition in the fast growing domestic cellular business.

The 21 circles include four metros and 17 zones covering the entire country. Each of these cities and zones have two private operators. State-run telecom giants BSNL and Mahanagar Telephone Nigam Ltd have the option of being the third.

The six firms in the fray for the fourth cellular licence include Birla-AT&T, Escorts Telecommunications, Barakhamba Sales and Services, Bharti Cellular, Indmobile and Reliable Internet Services.

The government hopes to award licenses by the end of August after a three-step bidding process.

Licenses will be granted on a non-exclusive basis initially for a period of 20 years, further extendable by 10 years, the statement said.

Tell us what you think of this report