Monday, May 24, 2010

Winners' curse in India's 3G auctions

I had meant to flag this article earlier but it escaped me. There is great jubilation over the Rs 70,000 crore the government is set to rake in from 3G auctions. Some people even think this makes amends for the telecom minister not having earned enough from the award of telecom licenses earlier.

Sumit Majumdar, writing in TOI, highlights the downside. One, the firms may go broke after having paid through the nose, so we will not see enough investmen in 3G infrastructure. Two, the firms that have bid may forfeit their security deposits and walk away from 3G in which we will need a fresh round of bidding. Three, the companies may be forced to charge consumers steep prices. He sums up the implications:
The diffusion of a 21century radical infrastructure which could be both a positive and disruptive influence for propelling Indias badly-needed knowledge revolution for the masses will not happen.Since the impact of general-purpose technologies at the individual level is profound,because of changes in the organisation of activities,the diffusion of a general-purpose technology such as 3G could have raised the return to cognitive skills and education.
The ability of 3G as a generalpurpose technology to have a phenomenal capacity to transform Indian society can be on hold.India can lose a golden opportunity to transform its society via a knowledge revolution using 3G technology.Indias 3G spectrum auction is fantastic for the exchequer but a fiasco for the common man.

1 comment:

Unknown said...


How are you doing? As an active blogger in the technology realm, I wanted to give you an heads up on an exciting event that we are conducting, which we feel would be beneficial to readers of your blog as well as you extended network. We need your help to spread the word about this event.

1) I would request you to post the below information in your blog for the benefit of the larger audience. (of course you can edit it)
2) We would also like to Invite you to register for the event. It will be great to host you on May 29th & 30th. We would like you to blog and tweet about the event.
3) Attached is the badge for the event. It will be great is you can stick it to your blog page and link it to the event site.

Based on the feedback of several bloggers who were present in last year's Startup City, we would be having a dedicated page on the event website for Bloggers, wherein once you confirm that you will attend the event, we will mention your name and also display the link to your blog. The page will be aptly named as "Bloggers @ Startup City". This will enhance your network and benefit larger audience to know your thoughts.

There will be more tahn 500 entrepreneurs, 40 venture capitalists and 6000 techies attending the event. You are free to interact with the entrepreneurs and VCs present at the event and get a peek into the technology startups landscape in India and some of the global trends.

This is an opportunity for you to promote your blog among other like-minded professionals. At the event we will have a special badge called "Blogger" made for you so that people can relate to you and you will also have access to all talks and startup companies.

As an 'Blogger @ Startup City', you’ll have exclusive access to the best and brightest companies poised to make the biggest impact. As you know, life has always been tough for new technology businesses. One of the challenges they face is branding/ PR. They would like their message to be heard through as many channels as possible. You will be doing a great service by coming over and talking to some of these cool startups.

Just like we are from a media house, as a blogger you too have a great role to play in building the ecosystem. We encourage you to do your bit. Do let us know if you need any other information or support. We respect your writing and your audience.

Please use the tag "startupcity" for all your posts, pictures and videos or twitter.

Thanks & Regards,
Dhivya Dharshini
Events Executive
M: 9986310137
L: 080-43402052