Only three telecom operators can roll out third generation (3G) services in Delhi due to a spectrum crunch, Communications and IT Minister A. Raja said Monday.
"Delhi has only 15 Mhz of spectrum available making it possible only for three telecom operators to offer such services," Raja told Lok Sabha in a written reply.
The minister also told parliament that an Empowered Group of Ministers (EGoM) had been constituted to look into matters concerning 3G spectrum auctions, scheduled to happen this year.
Each telecom operator (successful bidder) will be allocated 5 MHz of 3G spectrum once the auctions are over.
In Delhi, only two private players will be able to offer this high-end services as one slot is already reserved for the state-run telecom operator Mahanagar Telephone Nigam Ltd (MTNL).
The minister said West Bengal will get only 10 MHz of spectrum, while Gujarat will have 15 MHz.
Such a crunch may lead operators to make crazy bids to acquire spectrum in maximum number of telecom circles, industry officials worry.
The government is expected to earn about Rs.35,000 crore from the 3G auctions.