Vodafone says spectrum shifting will put Rs 10,000 cr burden

TRAI has recommended service providers using 800/900 Mhz spectrum band to higher frequency band of 1800 Mhz

PTI | May 1, 2012



Vodafone India has said a shift in the airwaves frequencies alloted to it to a higher band will put an additional cost burden of around Rs 10,000 crore on the company which will then be passed on to consumers, leading to tariff hike.

"Vodafone estimates that apart from the write-off of existing investments, it will cost around Rs 10,000 crore to replace its 900MHz with an 1800MHz network," Vodafone India Resident Director for Regulatory Affairs and Government Relations, T V Ramachandran, said in a letter to India's Telecom Minister KapilSibal.

The government has in-principle approved refarming (shifting) of spectrum and was waiting for Telecom Regulatory Authority of India's recommendations in this regard to start the process and formalise it as part of the new telecom policy.

Trai's, in its latest recommendation on 'Auction of Spectrum', has recommended that service provider using 800 and 900 Mhz spectrum band (being used for 2G CDMA and GSM service, respectively) to transmit signals for mobile and other wireless services should be shifted to higher frequency band of 1800 Mhz after the licences come up for renewal.

Ramachandran said this investment in the company's network could have been utilised for providing coverage to around 50,000 additional villages.

"The investment to replace the existing 900MHz network will mean added cost burden for the operator which will translate into higher tariffs for consumers," he said.

Another GSM service provider, Idea Cellular, at the time of Trai's consultation process has said that it will have to write-off Rs 17,000 croreinvestment that the company has made in its network, if spectrum refarming takes place.

Vodafone's licences in 10 circles are due for renewal in 2014 and 2015 and in each of these circles, the company was given initial spectrum of 4.4 Mhz to start its services.

As per latest Trai recommendation, minimum price per Mhz of spectrum across India in 1800 Mhz, being used by most of the new players for 2G services, will be Rs 3,622 crore. The spectrum price will be double of this in 800 and 900 Mhz band.

Ramachandran said the company will have to install additional 20,000 telecom towers to provide similar level of coverage, it is providing using existing spectrum band. This will take around 3-5 years for the network to adjust with new frequencies, he added.

"The installation of each additional site would imply a significant increase in the usage of power and especially diesel ... which would go against the efforts of the Government for Green Telecommunications," Ramachandran said.

Vodafone is using around 55,000 telecom towers at present to provide telecom service using 900 Mhz band.

Comments

 

Other News

The Constitution cannot be altered: Justice Abhay Oka

Justice Abhay Oka, who retired from the Supreme Court in May 2025, has said that the Constitution of India cannot be altered. Explaining the landmark Kesavananda Bharati judgment (1973) on the basic structure of the Constitution, he said, “This is one judgment that has saved democracy in India.&rdq

How the flora and fauna evolved in the Indian subcontinent

Mammals of India  By A.J.T. Johnsingh and P.O. Nameer HarperCollins India in association with Bombay Natural History Society  

India`s renewable race is moving beyond megawatts

When Shell bought Sprng Energy in 2022, India`s renewable energy market appeared to offer precisely what global energy majors were seeking: scale, growth and a place in one of the world`s largest energy transitions. Four years later, Shell is selling the same business to Aditya Birla Group for an enterpris

Nepal Floods: India keeps close watch on the situation

India`s central government has been keeping a close watch on the situation arising out of the flash flood in Nepal on Wednesday. Union home minister Amit Shah spoke with the chief ministers of Bihar and Uttar Pradesh, the two states that share the border with Nepal, regarding the disaster

UPI completes 10 years of digital payments revolution

The Unified Payments Interface (UPI), launched on August 25, 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), has completed 10 years of transforming digital payments in India. UPI has emerged as the backbone of India’s digi

Here’s an I.D.E.A. for career growth and success

Success in today’s professional organisation is no longer solely determined by academic qualifications, technical expertise or years of experience. While these attributes do matter, organisations increasingly value individuals who demonstrate the right mindset and behavioural qualities. The ability

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter