The Communication and IT Ministry has decided to auction 3G spectrum to CDMA operators. This is announced by telecom minister Mr A. Raja in a press conference.

He said that the allocation of spectrum would be done on the basis of the recommendations of Telecom Regulatory Authority of India. Earlier, it was decided to allot the spectrum on the basis of subscriber base of the operator. He also assures that the auction would be completed by October.

This announcement has brought equal chances both for GSM and CDMA players. There are only two bands available in the800 Mhz frequency band. The 800 Mhz band is a very efficient and cost-effective frequency band for 3G services.

Earlier, it was clear that the spectrum would go to Reliance Communications as it has the maximum number of users. The TRAI has scraped subscriber-linked allocation policy would lead to reduce chances of new players in the telecommunication field. This is not a good decision for Reliance Communications which was sure of getting 3G spectrum without any competition.

The third generation technology will provide higher speeds and data throughputs with high internet speed and multimedia applications.