Why unsold 700 MHz spectrum will pinch consumers

Not a single telecom firm bid for 700 MHz spectrum

GN Bureau | October 7, 2016


#Mobile Phone Connectivity   #Telecom   #Spectrum   #3G  
Not a single telecom firm bid for 700 MHz spectrum
Not a single telecom firm bid for 700 MHz spectrum

Your mobile phone coverage would not have been patchy and you would have faced much fewer problems regarding mobile phone connectivity if the 700 MHz had been picked up by the telecom operators. But, that didn’t happen.

The government has described India’s largest spectrum sale which ended on Thursday as a success, with Rs65,789.12 crore being raised in revenue. The consumer, however, would have been better off if the lower end of the spectrum had been sold. It would have essentially put an end to mobile phone users desperately looking for better coverage areas so that they can carry on an unhindered conversation.

Read the COAI proposal for 700 MHz

The 700 MHz band is highly desired thanks to its electromagnetic properties. The frequencies in the band, between 698 and 806 MHz, travel farther and pass through walls and other obstacles much better than existing cell phone networks do, leading to a lower required number of cells to provide the same amount of coverage. In addition, because of the lower frequency, it would require less power to run a mobile phone/Internet cell on the 700 MHz band than on the other common bands, which are at higher frequencies, explains a survey paper.

For the industry, the band effectively cuts down capital expenditure involved in the process of erecting towers. The cost of delivering mobile services in the 700 MHz band is around 70 percent cheaper than in the 2,100 MHz band used for 3G services.

The steep price of 700 MHz proved to be a deterrent. It had a reserve or base price of Rs 11,485 crore per Mhz.

“May be the operators are not ready...it is not that the 700MHz is running away. If it was not sold this time, it will be sold next time. We will sell it. Despite 700 MHz remaining unsold, we are happy that the upfront payment we will get is the highest ever, in the last five years,” Communications minister Manoj Sinha told Hindu Business Line

Also read.

Comments

 

Other News

MDR on UPI: Can sustainability come without weakening the network?

The extraordinary transaction volumes and value (₹29.82 Lakh crore in August 2026 alone) of the Unified Payments Interface (UPI) have made it not only an Indian success story, but a global one. In 2024, UPI accounted for nearly 49% of the world’s real-time payment transaction volume, with more th

The Xi-Trump summit: The unending rivalry

Diplomacy is akin to an art, wherein the summitry, conflict resolution and negotiations form apt constituents of the entire context of deal making and “playing for keeps” in the international arena. The Xi-Trump summit in Washington last week, in which the American president broke all conside

“Indians, yet treated like outsiders”

Moving to Delhi-NCR for education can be an exciting experience for students from Northeast India. It gives us a chance to meet new people, experience a different culture and become more independent. But living away from home also comes with challenges that people who have not experienced them may not al

Import duty on major edible oils cut

The government has reduced the Basic Customs Duty (BCD) on major imported crude edible oils with a view to moderating domestic edible oil prices, providing relief to consumers and mitigating inflationary pressures arising from the sharp increase in international edible oil prices.  

From pyramid to platform: BRICS agenda for Global South

In his opening address at the 18th BRICS Summit in New Delhi on September 12, prime minister Narendra Modi did something India`s diplomacy has been building towards for three years: he moved the ‘Voice of the Global South’ from a slogan to a work plan. Addressing the leaders, he argued that t

How to realise the full transformative potential of PM-JAY

The Pradhan Mantri Jan Arogya Yojana (PM-JAY), a welfare scheme which covers approximately 45 crore beneficiaries across India, provides cashless health cover of Rs. 5 lakh per family per year. It is the largest health insurance scheme which helped crores of poor families by reducing out-of-pocket expend

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter