Indian government prepares to sell 3G network licenses in December

India, the second largest mobile phone market in the world in terms of subscriber base, is now preparing for 3G Network. Department of Telecommunications announced that it will start accepting bids for licenses on December 7, 2009. Interested parties will have to submit all their queries within October 8. 2009; prior to a pre-bid conference on October 12, 2009 and submit applications within November 13, 2009. Bloomberg reports:

The sale will pave the way for faster data services in India, the biggest economy in the world not to offer 3G nationwide. India’s number of mobile-phone subscribers has room to triple from more than 440 million, giving Sweden’s Ericsson AB, China’s Huawei Technologies Co. and Finland’s Nokia Oyj incentive to compete for network-equipment orders.

The third-generation services “will be the next phase of growth,” Nishna Biyani, an analyst at Mumbai-based Prabhudas Lilladher Pvt. said by telephone. Carriers will use the permits for airwaves to initially boost revenue from improved voice services even as they add data and broadband offerings, he said.

The 3G network offers high speed data services and it will give a big boost to Indian companies like Bharti Airtel, currently the number one mobile operator in the country. The carrier will participate in the auction. Reliance Telecom did not say anything about the matter at the moment.