New Delhi: The Department of Telecommunications (DoT) has declared the conditions for 3G services.

DoT also stated that the 3G licences would be allotted via auctioning, and no merger and acquirements would be sanctioned in the first five years.

The generic name for the next generation mobile networks, 3G mobile communications permits high data speed, and able to back up high data rate services that include high resolution video, multi media services plus voice, fax and conventional data services.

While lecturing at a press meeting, Mr. Raja said that the spectrum would be offered in the 211 GHz band, to the operators, whereas the licenses would be provided via concurrent electronic auction, through a specified group in order to make sure transparence in the selection procedure.

Out of their total adjusted gross revenue (AGR), the operators will also pay extra spectrum fee of 0.5%, as the recurring annual spectrum charge. This added revenue share is projected to be 1% of AGR after 3 years from the time when spectrum was allotted.

On Trai’s suggestion that 3G range bidding would be permitted only for the existing operators, Communications Minister A Raja stated, “Having debated all the issues, we feel that all players should be allowed to offer 3G services.”

But, Mr. Raja didn’t give details whether DoT’s judgment to choose open competition would be referred back to Trai or not.

CDMA operators such as Reliance Communications and Tata Teleservices would be given authorization to provide 3G equivalent services (EV-DO) in the subsisting 800 MHz.

The minister said, “If the CDMA based service providers ask for the EV-DO carrier of 2x1.25 MHz, they would have to pay an amount proportionate to the highest bid for spectrum in 2.1 GHz band.”

In another major decision, the Government also said that the spectrum for offering broadband wireless access services (Wimax) would be released.