Spectrum price will hurt Digital India, warn telecos

PM’s intervention sought as the auction is coming up in February

GN Bureau | January 9, 2015



Invoking Digital India, promoted by prime minister Narendra Modi, the telecom operators have asked the government to review the review the base price (Rs 3,980 crore) for popular and efficient 900 MHz airwaves for the February auction.

The Cellular Operators Association of India (COAI), the trade body representing GSM operators such as Bharti Airtel, Vodafone India and Idea Cellular, has written to the PM and telecom minister Ravi Shankar Prasad on this issue. It has also exhorted the minister to ensure at least 15-20 MHz of 3G airwaves in the 2100 MHz band is available for along with 900 MHz bandwidth next month.

"Lack of sufficient quantities of spectrum will constrain operators from offering affordable voice and internet services to the masses and will delay the implementation of Digital India vision," says another mobile service provider Uninor.

"Reserve price for the proposed spectrum auction in the 900 MHz band in 18 circles has been increased by 32.5% over what was recommended by Telecom Regulatory Authority of India (Trai)," said COAI. It added that the 32.5% escalation over Trai's recommendation translated into a steep increase of Rs 4,880 crore for 5 MHz blocks across 18 regions.
 
The COAI has warned that such a high reserve price of 900 MHz spectrum would hurt business viability of operators and make it more difficult for companies to raise funds. The sector is already facing a debt burden of over Rs 2,65,000 crore.
 
If the government refuses to consider the demand of the operators, the tariffs are going to go up. Even otherwise, the companies may be looking to increase rates as they will have to make fresh investments to buy the available spectrum.
 
Meanwhile, strangely a department of telecom panel on Trai's recommendation on 3G spectrum price has questioned the methodology for arriving at base rate of Rs. 2,720 crore per megahertz for these airwaves.

The Trai on December 31 had recommended this rate for 3G spectrum. This is about 19 percent lower compared to the price paid by service providers in the 2010 auction.

The panel is believed to have said that the last auction-determined price for a spectrum band should be the guiding benchmark for determining the reserve price for that band in a subsequent auction. The pan-India per Mhz price paid by telecom companies was Rs. 3,350.11 crore.

The other points on which the panel wants clarity pertains to maximum quantum of spectrum a company can purchase, timeline for network roll-out, payment terms, and annual spectrum charges.

Comments

 

Other News

India’s freedom struggle was shaped by wider Asian political thought

As we mark 80th anniversary of independence, ‘Asianism and the Fall of Empire’ (HarperCollins India) by historian Mithi Mukherjee offers a new perspective on Ind

What is colonialism? A relook at modern history

The Chromatic World Order: The Fiction That Rules Our World  By Sajid Mohamed Aakar Books  

Monsoon session of parliament adjourns sine die

The Monsoon Session, 2026 of Parliament which commenced on July 20 was adjourned sine die on Thursday. The session provided 19 sittings spread over a period of 25 days.   During the session 11 Bills were introduced in Lok Sabha and 2 Bills were introduced in Rajya Sabha. 12 B

Consumer Justice at a Crossroads

Over the past four decades, India`s consumer protection landscape has undergone a remarkable transformation. What began with the Consumer Protection Act, 1986 as a simple mechanism to empower ordinary citizens has evolved into a comprehensive framework capable of addressing challenges ranging from mislea

Doctors, experts call for ban on junk food ads, mandate warning labels

More than 30 doctors, medical scientists and public health professionals have urged the government to take decisive action against the aggressive advertising and marketing of junk food, calling for a watershed ban on advertisements for foods high in fat, sugar and salt (HFSS) and ultra-processed foods (UPF

Asiatic Lion population rises from 523 in 2015 to 891 in 2025

On World Lion Day 2026, environment, forest and climate change Minister  Bhupender Yadav celebrated India’s remarkable journey in lion conservation and reaffirmed the country’s unwavering commitment to protecting wildlife and biodiversity.   In a post on soc

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter