Monday, 11 May 2015

Spectrum allotment and call rate

27 Mar 2015

Spectrum allotment and call rate


Participants: Sadana Dixit, former member, Telephone commission and Praful srivatsava, PTI.

Specturm auction - Huge revenue to the government – around Rs.1 Lak 10 k crore – Books of telecom operation and financial impact on their performance – what benefit the public/consumer?

Tariff cannot be predicted now – it depends up on the Spectrum band they have taken and Two year moratorium period;

Investment – Capital Expenditure –

In the beginning, the spectrum in pan-India basis was Rs.1658 Cr but later Bharathi Airtel or Vodafone paid Rs. 21,000 Cr for limited circle – The rate is 12-13 times higher;

It’s because of the competition which had been shoot-up in the later stages;

Spectrum sharing – to – Spectrum trading;

Future opportunity for the telecom operators in India?
It has very low tariff ratio. Large number of prepaid Network.
New Telecom policy and new guidelines. It going bring a bounce to the sector. Tremendous scope in the rural areas; Optical fibre network plus Mobile broadband network;

What are the factors which keep the tariff lower?
1. Volume of service provided.
2. Value added services;

800 MHz bought earlier – didn’t get good responds.
Note: Minimum Reserve Price, Beauty Contest, Spectrum management policy under NTP 1999;

Read, Spectrum management in India

Also refer:

TRAI consultation paper on Spectrum Auction

TRAI consultation paper on OTT services (Net neutrality)

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