India’s four largest mobile operators have reportedly called upon the telecoms minister to defer the upcoming spectrum auction until enough additional airwaves are available.
In a joint letter to Ravi Shankar Prasad, a copy of which has also been sent…
India’s four largest mobile operators have reportedly called upon the telecoms minister to defer the upcoming spectrum auction until enough additional airwaves are available.
In a joint letter to Ravi Shankar Prasad, a copy of which has also been sent to Prime Minister Narendra Modi, the CEOs of Bharti Airtel, Vodafone India, Idea Cellular and Reliance Communications echoed regulator Trai’s recent recommendations to boost spectrum reserves before an auction is held, local media reported.
Like Trai, they have asked for spectrum in the 800, 900, 1,800 and 2,100 MHz bands to be auctioned simultaneously in a “big bang” sale, the reports cited the letter as saying.
The planned auction, tentatively set for February 2015, is for airwaves in the 900 and 1,800 MHz bands.
The CEOs reportedly argued that conducting an auction without sufficient spectrum would have a serious impact on investments in the sector, predatory pricing, continuity of services and the public interest. It would also hinder operators’ ability to provide affordable broadband data services and therefore hamper the government’s Digital India, Smart Cities and Wi-Fi India plans, they added.
As such, the operators have asked for their current licences, set to expire in 2015-16, to be extended.
If it takes too long for the government to secure extra spectrum, the CEOs suggested it auction all 900 MHz spectrum allocated to 1996-2000 licensees when state-controlled Bharat Sanchar Nigam and Mahanagar Telephone Nigam’s licences expire.
In its recent recommendations on the upcoming auction, Trai contended that the spectrum shortage would force operators to pay inflated prices, thereby adding to the sector’s already hefty debt.
The government aims to raise at least US$1.5bn from the upcoming auction, according to earlier media reports.
Last February, the country raised US$9.8bn when it sold spectrum in the 900 and 1,800 MHz bands to seven local operators. The four leading carriers all won frequencies, with Vodafone and Bharti being the top bidders.
