The Government on Wednesday indicated that spectrum for next generation 3G mobile services would be priced and would be commercially launched in the second half of 2007.
"The process for 3G service has already initiated in India and it is expected that we should be able to launch 3G services by the later half of 2007," Communication and IT Minister Dayanidhi Maran said at a seminar on 3G telephony organised by Hindustan Times.
The minister said the spectrum for 3G services need to be priced rightly keeping in mind the scarcity of spectrum and fiscal deficit of the country.
Money from spectrum would be utilised for the development of infrastructure and for other social obligations of the government, Maran said without divulging any details.
TRAI was scheduled to submit recommendations on 3G spectrum to Department of Telecom later on Wednesday.
3G service is an upgradation from the existing services allowing users to download video contents at much faster speed as well use mobile broadband with the advent of new technology.
"Our Asia counterparts have already launched 3G services. China is in the process of conducting its field trials and is expected to launch it soon. 3G will play a key role in taking India to the next level," he said.
The government has been making efforts for spectrum coordination, especially with Defence services, Maran said, adding some fiscal provisions have also been made for the vacation of spectrum.
The cost of migration is not just immediate re-farming but involves redeployment, equipment purchase and investment on human resource, he said.
The bands need to be identified, which would enable simultaneous deployment of the competing CDMA and GSM technologies to ensure a level playing field for both, the minister said.