According to a report from Ovum, although a 3G spectrum auction in India can be expected soon, there is still uncertainty about the number of blocks to be released. This decision is expected to have little impact on technology evolution, but it will have important implications on the ability of the smallest two of the six private players participating to win spectrum. According to Amit Gupta, principal analyst of Ovum based in India, the research firm does not believe that 3G spectrum will attract more new players in the industry. The decision on the amount to be released is likely to have little impact on the bidding strategy of the four largest players and participation from new 2G licensees. However, if the auction is limited to only three blocks of 2x5MHz spectrum, Idea and Aircel will find it difficult to outbid their bigger rivals. Gupta believes that although 3G spectrum in India is much needed and should be auctioned soon, its impact on competition and technology evolution is overstated.
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