After SSTL, Telenor Wants Further Price Cut of Spectrum in March Auction

Following Govt’s decision of reduction in base price of spectrum in upcoming March auction, Telenor expects that further price cut is required for the sustainability and growth of the telecom sector. Earlier Sistema Shyam Teleservices also welcomes the price cut move (50% reduction in CDMA airwave base price), but expressed the same view that more price cut is necessary.

Telenor-specturm-cut

“The government has been giving right signals to industry leaders. We are hopeful that the pricing issues would be resolved and we will wait for March. But as the indications stand, the reserve price is likely to be brought down,” Telenor’s President and CEO Jon Fredrik Baksaas said. Baksaas, who was in Davos to attend the World Economic Forum, said Telenor would bring pricing issue to “the attention of decision makers”. He, however, refused to elaborate.

The government is expected to kick-off the second round of auction on March 11. The government has cut the reserve price for spectrum auction by 30 per cent, following a lack in interest from telecom operators.

This Article Was Written By: Rudradeep Biswas

Rudradeep Biswas - Senior Telecom Analyst

The happy guy RDB (stands for Rudradeep Biswas) has been writing for Telecomtalk since 2009, covering mobile operators, 3G, broadband, WiFi, 4G, LTE, telecom policies and what-not related to Indian telecom. He is by profession a doctor, did his MBBS from R.G.Kar Medical College, Kolkata.

{ 20 comments… add one }

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  • upesh February 7, 2013 10:25 pm, 10:25 PM

    i want know that uninor licene in up west is valid,and how long

    Reply
  • Kaushik Roy February 2, 2013 9:01 am, 9:01 AM

    TODAY IS THE FIRST ANNIVERSERY OF LICENCE CANCELLATION BY SUPREME COURT

    Reply
  • Kaushik Roy January 30, 2013 10:09 pm, 10:09 PM

    Telenor will not bid for Mumbai if there is no reduction of atleast 50% in base price like CDMA.
    What an Idea 4 blackmailing ?

    Reply
  • zeeshan January 30, 2013 8:24 pm, 8:24 PM

    shayad kabhi nahi.

    Reply
  • Ashish gupta January 27, 2013 11:55 pm, 11:55 PM

    Kya mumbai me uninor band ho jayega

    Reply
  • Ashish January 27, 2013 9:23 pm, 9:23 PM

    What a drama !!!….govt should throw these two operators…they unnecessarily start price war . .now they want cheap spectrum…why???

    Reply
    • Saurabh January 28, 2013 12:39 pm, 12:39 PM

      +1. :)

      Reply
  • ankush January 27, 2013 8:49 pm, 8:49 PM

    uninor m.p. me kab ayega

    Reply
  • SDee January 27, 2013 12:08 pm, 12:08 PM

    W0W……..! what a cat mouse chase ,so full of drama just to show how much serious these operators are or govt is thinking of customers benefit eventually its all about making fool of customers and after this when all this circus is finished the only sufferer will be customer… from beginning govt. said about increasing price and this gave Operators a free hand on increasing the TARIFF,all the operators started to complain about spectrum fees and increased the tariff and the govt. is just acting as dummy like thay have no idea what these F* OPS are doing……..

    Eventually after the spectrum is over the Operators gets what they want to be benefited out of Spectrum.Govt. will finally lower the price but these operators wont ,once their tariff is increased they will continue to milk out this ….

    Reply
  • Mane January 27, 2013 9:33 am, 9:33 AM

    @Pratik
    Mr. Pratik aircel didn’t scale down in Rajasthan. They still countinue because they have about 30 lakhs user which is higher than other 5 to 6 well populated circles. Aircel is going to deploy new bts and gradually stoping usin icra sites.

    Reply
  • pratik January 26, 2013 10:52 pm, 10:52 PM

    there is artificial spectrum shortage in rajasthan.coz sstl(mts) holds 4.4mhz gsm spectrum in 1800 mhz band beside from 5mhz in 800mhz.they dont use n block the 4.4 mhz spectrum in 1800 mhz coz they dont hav gsm service.also aircel scaled down in rajasthan n blocked 4.4mhz spectrum.so mts n aircel should surrender their gsm spectrum in 1800mhz band in rajasthan

    Reply
  • S.Sudhakar January 26, 2013 10:15 pm, 10:15 PM

    I think the CDMA operators are not paying any spectrum amount for increasing their network speed Rev.B etc. If yes, then why should the GSM operators pay spectrum fee?. Let them use the 2100 MHz band as their wish (but mobiles and data cards must be compatible). What the hell?.

    The government must roll back the spectrum price reduction for CDMA operators as the operators just increase the speeds and impose 2 or more FUP on unlimited plans just like MTS and docomo to rob the subscribers’ pocket. This itself is a BIG INCOME to the operators. If reduced price of CDMA spectrum takes place, thats all. CDMA operators will become more rich illegally than ministers !!!.

    Reply
    • Pranajit January 27, 2013 12:32 am, 12:32 AM

      i second you. these retard ISPs never talk about improving quality and service.They are much eager to whine about marginal profit.
      In no circumstances,there should be any reduction in spectrum fees.

      Reply
  • shamim January 26, 2013 7:52 pm, 7:52 PM

    @telecomtalk… is this possible for uninor to come again in west bengal in upcoming auction of march ??
    if not then when it be possible to come to WB ??

    Reply
    • Saurabh January 27, 2013 1:29 pm, 1:29 PM

      Yeah any operator can apply for license anytime for the circles where price is determined. Telenor is not going to bid in March spectrum auction for West Bengal circle as price is already discovered for the circle in previous auction. This time only Delhi, Mumbai, Karnataka and Rajasthan will be up for auction which were unsold last time. Once Pan-India price is discovered, all operators willing to get spectrum in particular circle will have to pay the amount discovered through auctions. But in case more slots gets added, they will have to participate in new auctions.

      Reply
      • Rudradeep January 27, 2013 2:45 pm, 2:45 PM

        Uninor can bid for 900MHz spectrum in Kolkata and WB and it’s the only way Uninor can continue services here. But Telenor is not interested in these two circles!

        Reply
  • Sayantan January 26, 2013 6:53 pm, 6:53 PM

    give them for free….sasta call rate do ge to aisa hi hoga…

    Reply
  • Saurabh January 26, 2013 3:57 pm, 3:57 PM

    Telecom Circus 3.0-

    Uninor asking for 50 percent reduction. If this happens, MTS will ask for reduction upto 70 percent as CDMA is not so popular. In that way Uninor will again ask for reduction and this circus will go on and on and on. Govt shouldn’t reduce prices further as this will again lead to another set of problem. If Uninor don’t want to pay, they can exit the circle like Videocon.

    A suggestion for Uninor- Don’t bid again. In absence of bidder, Govt will again consider reduction and then came back. Until then ask customers to port-out.

    Reply
  • docomo January 26, 2013 3:18 pm, 3:18 PM

    telenor is right in asking for more reduction in price for mumbai and delhi, both these are too much costly

    Reply
  • Mane January 26, 2013 12:59 pm, 12:59 PM

    While being the cheapest bidding circle, Rajasthan may again miss next 2g auction because there is no spectrum availble for 11 districts out of 33 including Jaipur. These 11 districts cover more than 45% of total population. I miss uninor because there is no possibility of a new operator in Rajasthan circle.

    Reply

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