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

Railways imposed ₹5.13 crore fine for food quality and hygiene violations

Indian Railways serve about 58 crore meals every year on an average. About only 0.0008% food quality related complaints are received on average. Based on complaints during the last three years, appropriate penal actions have been taken by IRCTC. Such actions include imposition of fines amounting to ₹5.13

STHAVAR: Why every Indian built asset needs a permanent digital identity

India has built digital systems for identity, payments, taxation, documents, logistics and public services. State governments, ministries, infrastructure agencies and urban local bodies have also created portals for land records, building permissions, project monitoring, property taxation and municipal s

Saksham Skill census identifies 22,000 job-ready candidates in one Mumbai ward

A first-of-its-kind AI-enabled skill census conducted in Mumbai`s H-West Ward has identified a potential livelihood pipeline of nearly 22,000 candidates, generated over 32,000 provisional job matches while revealing that 71.2 per cent of surveyed homemakers are willing to join the workforce, according to

GI tags: Scaling traditional wealth into global brands

Geographical Indication (GI) tags have emerged as a powerful tool for protecting India`s cultural heritage, while creating economic opportunities for local communities. By linking products to their place of origin, GI tags preserve traditional knowledge, prevent misuse, and enhance consumer trust. They h

BMC: 207 officials in ACB net, 112 still on duty, 68 retire before justice catches up

There are significant delays in the handling of corruption cases involving officials of the Brihanmumbai Municipal Corporation (BMC), a Right to Information (RTI) response obtained by rights activist Jeetendra Ghadge has revealed. As of 30 April 2026, 207 BMC officials face Anti-Corruption Bureau (A

The transformation trap: Why efficiency is not innovation

Every company is transforming, or so it claims.   There was a time when the word ‘transformation’ carried weight. It signified bold strategic shifts, reinvention of business models, and breakthrough technologies that fundamentally changed how organizations created

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter