In a recent move, DOT has decided that CDMA-based 3G spectrum would
not be auctioned. Instead, it would be distributed
only to Reliance Communications and Tata Teleservices (existing CDMA-license holders)
at a fraction of the cost paid by GSM operators to obtain 3G, unless Shyam Sistema (the only other CDMA-license holder in the country), a newly-formed joint venture between Shyam Group and Russia's Sistema also expresses interest in possessing the 3G spectrum, in which case an appropriate auction would be held.
DoT claims that the number of CDMA-based 3G holders has been kept at two due to lack of spectrum at 800 MHz. Shyam Sistema has not yet given any indication of interest in obtaining CDMA-based 3G spectrum.
sources:
http://www.cn-c114.net/575/a374455.html
http://www.pluggd.in/indian-telecom-industry/3g-updates-dot-may-double-base-price-cdma-auction-limited-3471/
http://www.hindu.com/thehindu/holnus/006200901231933.htm
NOTE: As a result of our blog (or so I would like to believe), recently COAI, which is the GSM operators' body, wrote to DoT asking them to stop CDMA players from launching 3G CDMA before GSM CDMA auctions, otherwise it would give an unfair advantage to the CDMA players, [source: http://economictimes.indiatimes.com/News/News_By_Industry/Telecom/COAI_wants_govt_to_stop_CDMA_cos_move_to_give_3G_service_/articleshow /4083442.cms], and TRAI recently concluded that the 3G CDMA owners would have to match the highest 3G GSM bid (in a proportion of the alloted spectrum). Since 3G GSM owners get 5MHz in 2.1 GHz band and 3G CDMA owners get only 1.25 MHz in the 800 MHz band, the 3G CDMA owners would have to pay atleast 25% of the highest bid of 3G GSM [source: http://economictimes.indiatimes.com/News/News_By_Industry/Telecom/CDMA_cos_will_have_to_match_top_GSM_bids_in_3G_auction/articleshow/4102405.cms]
