The department of telecommunications (DoT) is likely to start the process of allotting 3G spectrum by August 2008. “DoT is currently in the process of finalising the modalities for allotting 3G spectrum,” DoT secretary Siddharth Behura told The Indian Express.

The introduction of 3G services will enable high speed data services such as broadband, games and video on mobile phone. Vodafone CEO Arun Sarin and Airtel chairman Sunil Mittal on Tuesday announced that they are interested in entering 3G services in India.

If DoT manages to allot 3G spectrum by the second quarter of the coming financial year, operators will be able to roll out their networks and offer services by the end of 2008. Apart from opening up new applications for consumers, 3G services would give service providers an opportunity to increase their average revenue per user (ARPU) by offering the new services.

Earlier, the Telecom Regulatory Authority of India (TRAI) had recommended that 3G spectrum should be allotted through the auction route. It had proposed that there should be a base price of around Rs 1,050 crore at the national level. While for Mumbai, Delhi and A-circle cities and towns, the base price was set at Rs 80 crore each, for Chennai, Kolkata and B-circle cities and towns it was fixed at Rs 40 crore each. For C-circle cities and towns, the base price was Rs 15 crore each.

TRAI had also recommended that there should be a reservation for government-owned Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd for 3G spectrum. In November 2007, DoT announced that the TRAI recommendation on auction route would be followed for allocating 3G licences, but details of the process were not announced.