The Ministry for Communications and Information Technology on August 7 approved the release of 3G and WiMax spectrum to BSNL/ MTNL, giving both a head start over private telecom firms.
The 3G spectrum blocks are in the 2.1-GHz band. MTNL will provide services in New Delhi and Mumbai while BSNL gets a block in other service areas. Both carriers are expected to begin offering 3G services by the end of the year. Private companies who win spectrum auctions are expected to rollout new services beginning in mid-2009. Auctions are expected to begin in the next several weeks.
BSNL and MTNL also each received one block of 20-MHz spectrum for WiMax services in the 2.5-GHz band.
For both 3G and WiMax spectrum, they must pay the government an amount equal to the highest bid during the auctions.
The WiMAX Forum has lauded the Department of Telecommunications "the decision to allocate and auction 2.3 and 2.5 GHz frequency band in the country".
The auction will enable two 20 MHz blocks in both the 2.3 and 2.5 GHz bands.
The government also announced that blocks in the 700 MHz and 3.3-3.6 GHz bands will be auctioned as they become available to offer fixed WiMAX and rural wireless broadband segments to consumers.

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