3G Telecom Services – Will they be profitable?


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Title 3G Telecom Services – Will they be profitable?
Creator Mandan, R. K.; R.K. Mandan, Director, First India School of Business, Gurgaon
Jain, Rahul; Rahul Jain, 2<sup>nd</sup> year MBA student, First India School of Business, Gurgaon
Subject SPACE
Description With the launch of mobile telephones in 1991 through the private sector an unprecedented revolution in telephone connectivity has taken place in India. From a situation where one had to wait for years for a telephone connection to one where even an ordinary maid servant owns a telephone, the country has witnessed the effects of privatization in what was once considered the sacred domain of the government. This revolution was aided in no small way by the reasonable license allocation policy followed by the government.
However, with the advent of new technology in the form of 3G the government changed its policy and decided to auction licenses as it felt that 2G licenses were given away very cheap to the private sector. The government collected more than double the amount it had anticipated from the sale of these licenses giving rise to the demand that the allocation policy of 2G licenses was faulty and led to a huge loss to the exchequer.
This article attempts to analyze the investment in 3G services and examine whether the auction process of allotment of licenses was justified from a financial point of view.
Publisher School of Management Sciences
Date 2016-05-17
Type info:eu-repo/semantics/article
Peer-reviewed Article
Format application/pdf
Identifier http://myresearchjournals.com/index.php/ADHYAYAN/article/view/4074
Source Adhyayan: A Journal of Management Sciences; Vol 1, No 1 (2011)
Language eng
Relation http://myresearchjournals.com/index.php/ADHYAYAN/article/view/4074/3811

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