The upcoming spectrum auctions are likely to get a subdued response despite the steps to woo telecom companies.
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
Bu hikaye Business Today dergisinin September 11, 2016 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Today dergisinin September 11, 2016 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
"Focus on the challenge of each customer"
SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company
PEDAL ON THE FUTURE
THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY
BREATHE EASY
Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference
The Taste of India in a Glass
FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN
LOOK BEFORE YOU LEAP
IN 2025, INVESTORS WILL NEED TO FACTOR IN VOLATILITY ACROSS ASSET CLASSES
MISSING ADVISORS
INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE
TURNING A CORNER
SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE
REALITY CHECK
INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?
TRUMP'S TRADE TANGO
The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?
"The essence of the Trump administration will be transactional”
Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more