3G services will not come cheap: Mittal

Market leader Bharti Airtel (BHARTIARTL.BO : 305.25 0) cautioned that 3G mobile services will not come cheap, especially for subscribers in metros, as service providers had to pay dearly for spectrum.

"Take the example of Delhi itself, or Mumbai. The amount for spectrum that has been charged is close to Rs 3,500 crore each... Just to recover license fees and input cost, it works out to be Rs 700-900 per month," Bharti Group Chairman Sunil Mittal said.

Amid highly aggressive bidding for 3G spectrum, Bharti Airtel won 13 circles, including Delhi and Mumbai, paying Rs 12,295.46 crore, the highest among service providers.

The company could not achieve the objective of a pan-India 3G foot print as the prices rose beyond a reasonable level due to various factors like the auction format, a severe shortage of spectrum and also ensuing policy uncertainty, it had said.

Source:http://in.biz.yahoo.com/