Not a pretty Picture
Business Today|September 11, 2016

The upcoming spectrum auctions are likely to get a subdued response despite the steps to woo telecom companies. 

- Manu Kaushik
Not a pretty Picture

In early January, the telecom regulator TRAI organised an open-house discussion in Gulmohar Hall at New Delhi’s India Habitat Centre. The aim was to take the opinion of stakeholders before finalising the blueprint for the year’s spectrum auction from which the government expects to net $87.1 billion ( ₹ 5.6 lakh crore). The issues discussed included the quantum of spectrum to be auctioned, block size, rollout obligations and reserve price. The auction is scheduled for September-end.

Those representing telecom companies wanted the government to delay the sale of the 700 MHZ band, the focal point of the auction, says an executive of a telecom company. They argued that their companies were financially strained and would find it difficult to pay for this expensive band. Plus, the device and equipment ecosystem for this band was not fully developed, they said. In spite of these objections, the telecom ministry has decided to go ahead and sell the 700 MHZ spectrum too, though it has, at the same time, also taken steps to make things easier for telecom companies – it has reduced the equity lock-in period from three years to one year, slashed the interest rate for the deferred payment option from 10 per cent to 9.3 per cent, eased the rollout obligations, and lowered the spectrum usage charge or SUC.

However, experts say these measures are unlikely to help telecom companies, as they have been left with little financial muscle after paying through their nose for spectrum and acquisitions over the years. The spectrum cost is the biggest deterrent and the government has done nothing to bring it down, they say. Airtel India’s MD and CEO Gopal Vittal has said on several occasions in the past that the price of the spectrum is unaffordable for them. Airtel is India’s largest telecom company.

The False Rationale

この蚘事は Business Today の September 11, 2016 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

この蚘事は Business Today の September 11, 2016 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

BUSINESS TODAYのその他の蚘事すべお衚瀺
"Moving to cloud helped us grow❞
Business Today India

"Moving to cloud helped us grow❞

What was the problem you were grappling with?

time-read
1 min  |
November 24, 2024
She's Got Time
Business Today India

She's Got Time

MORE WOMEN ARE BECOMING WATCH CONNOISSEURS, SEEKING OUT BOTH JEWELLED AND TECHNICAL WATCHES FOR THEIR STYLE AND CRAFTSMANSHIP

time-read
3 分  |
November 24, 2024
RISING STAR
Business Today India

RISING STAR

PARUL GULATI IS a name that's been steadily gaining prominence in the Indian entertainment industry after she appeared on season 2 of Shark Tank in 2023. She has become a multifaceted personality who effortlessly transitions between acting and entrepreneurship.

time-read
1 min  |
November 24, 2024
Building on a Legacy
Business Today India

Building on a Legacy

WHEN ZAHABIYA KHORAKIWALA stepped into her role as Managing Director of Wockhardt Hospitals over a decade ago, she confronted formidable challenges that have since turned into achievements.

time-read
1 min  |
November 24, 2024
LEADER IN INNOVATION
Business Today India

LEADER IN INNOVATION

AS FEDEX'S PRESIDENT (Middle East, Indian subcontinent and Africa), Kami Viswanathan has a lot on her plate.

time-read
1 min  |
November 24, 2024
WAITING IN THE WINGS
Business Today India

WAITING IN THE WINGS

Here are those who missed out as they have not yet completed a year in office; they'll be strong contenders in 2025

time-read
1 min  |
November 24, 2024
A DECENT PROPOSAL
Business Today India

A DECENT PROPOSAL

IN TODAY'S WORLD OF TRYING TO CREATE AN EQUITABLE SPACE, BOTH MEN AND WOMEN CONTRIBUTE TO THEIR HOUSEHOLDS. WOMEN ARE ENCOURAGED TO HAVE THEIR OWN SAVINGS POOL AND INVESTMENT ROUTINE. GIVEN THIS, HOW SHOULD FUTURE BRIDES APPROACH FINANCIAL PLANNING?

time-read
5 分  |
November 24, 2024
Women and the STEM Bias
Business Today India

Women and the STEM Bias

EMPOWERING WOMEN IN STEM WILL NOT ONLY BENEFIT INDIVIDUALS, BUT ALSO STRENGTHEN THE ENTIRE INDUSTRY, DRIVING INNOVATION AND PROGRESS.

time-read
3 分  |
November 24, 2024
ROCKET WOMEN
Business Today India

ROCKET WOMEN

WOMEN IN INDIA ARE NOT ONLY VENTURING INTO SPACE BUT ARE ALSO STARTING TO SPEARHEAD THE COUNTRY'S EFFORTS IN THE GLOBAL SPACE RACE.

time-read
6 分  |
November 24, 2024
ONE STEP FORWARD
Business Today India

ONE STEP FORWARD

THE NUMBER OF WOMEN INDEPENDENT DIRECTORS IS GROWING STEADILY, BUT IT'S A LONG WAY FROM GENDER PARITY. MUCH MORE NEEDS TO BE DONE TO BREAK THE GLASS CEILING IN BOARDROOMS.

time-read
6 分  |
November 24, 2024