Telecom PSU, BSNL has set its target of starting 3G mobile services by year end and be the first telecom operator in India to launch this facility. BSNL has decided to take a lead over private telecom operators and has placed purchase orders for necessary equipments required to initiate 3G services in the northern, eastern and western circles.
CIT Minister A Raja had given the lead to telecom PSUs BSNL and MTNL for allocating 3G spectrum ahead of others with a condition that both will pay the price equivalent to the highest bid. This was done keeping in mind the cumbersome process to procure equipments by the PSUs in comparison to that by the private players.
This move would definitely benefit BSNL with various the first mover advantages, couple of them being opportunity for early profits and status of monopoly.