The Empowered Group of Ministers (EGoM) decision, which met on Tuesday, to sell up to 13.75 MHz of spectrum in the 1800 MHz band, is “incrementally positive” for the sector, according to a note by Barclays Research.
“We believe that this should be able to satisfy the current demand of the 2G spectrum both from new players and existing participants. Further, if the entire 13.75 MHz is taken, there would not be enough spectrum left for 900 MHz re-farming,” it added.
This would bring the total 1800 MHz spectrum to be put up for auction at 13.75 MHz per circle. This is a positive step over the 5 MHz that was initially recommended by the Telecom Regulatory Authority of India (TRAI) and 10 MHz suggested by the Telecom Commission for auction last week.
However, the group od ministers decision to put 13.75 MHz of spectrum up for auction in the 1800 MHz band would create a spectrum shortage for the 900 MHz refarming in 16 of the 22 circles. This is based on spectrum availability provided by TRAI.
Pricing of each of the bands would be critical in the incumbent’s decision on how to play the tradeoff between acquiring 1800 MHz band and positioning against the re-farming of the 900 MHz band. Decision on the reserve price for the auction has been deferred to the next EGoM meeting, tentatively scheduled for June 20-22.
Now we can see two side of the story while as reported earlier when Mason study was out it public it said that the maximum harm will inflicted on consumers although it was was commissioned by Bharti Airtel, Idea Cellular and Vodafone India. Now in the latest report by a independent research company its all together giving a different view point. We now ask you whom do you support the Empowered Group of Ministers view or the Operators do let us know via comments.
Cherry June 9, 2012 at 5:53 pm
@kingston
Mr. Kingston,
Even if i am speaking from UAE i am still a indian. 80% of the population of UAE are indians. So don’t underestimate that indians living abroad are not worried and knowledge about indians welfare. Each and every indian wants his country to be the leader in the world. In that context spectrum refarming initiative taken by the indian government should be welcomed by all the citizens of india.
Cinema tickets prices have increased a lot in the last ten years. Are people not going to cinema theatres? commodities prices are getting increased every quaterly. Are people not buying commodities? So like that people will accept the new technology.
In UAE you can use voice, data and video in a mobile phone. In UAE the top speed available is 100Mps. In UAE you have unlimited plans of various speed like 256kbps,512kbps, 1mbps, 2mbps, 4mbps, 8mbps, 30mbps, etc..
If you are really interested to use mobile phones and there is a real need for mobile phones you have to accept this technological change.
Think Practically and wisely.
krishnendu June 6, 2012 at 11:34 pm
but how will it give us speeds in gbps can you explain?operators got 3g license at a higher price than 2g,so ultimately vey few people are using it(that too mostly in cities)now after so many years they will get 2g spectrum at a higher price than 3g!It all seems direction less because state owned bsnl still cant afford to provide 1mbps as minimum speed in broadband(even in 2012!!!!and of course they get all the spectrums much before the pvt operators).Ultimately the corrupt govt is passing the blame on telecos to get a clean slate.End result will be higher call rates.
Jagannath June 6, 2012 at 8:11 pm
Operators side, because they decide the tariffs finally not the EGOM. If the 900Mhz band is auctioned, the existing operators who now provide a good coverage in a telecom circle may vanish…. & also the costs would rise for consumers
DB June 6, 2012 at 6:20 pm
@Sherin Joseph
@ SHERIN – so what if GANESH is an employee ? What he says is correct. Its in teh best interest of the COUNTRY.
> @Ganesh,
You seems employee of some telco thats why you are supporting operators
sandeep June 6, 2012 at 5:17 pm
Dont forget this is the same govt that had declared that there is zero sum loss in 2G allocation.They will say that the tariff would go up by 4p etc etc…Just wait and watch how much u pay!
sandeep June 6, 2012 at 5:15 pm
@Cherry
@Cherry
srsly..do u remember we had mobiles prior to 1999.Did any one use it.Higher tariffs means miss calls would go up.just look at the fate of 3G.Did it ever take of after so much hype!!in our country public is cost sensitive.Just because u get great quality no one will pay great prices..
sandeep June 6, 2012 at 5:12 pm
@Sherin Joseph
Sherin it neednt be that higher tariffs would meabn better coverage…and as far as i am concerned i dont think that govt is going to pay ur bills.
sandeep June 6, 2012 at 5:11 pm
In the end its the companies that would decide the tariffs,not the EGOM.After looting via the auction they will be out of the whole drama.Later we as consumers are going to pay for each penny that these thieves collected in the name of spectrum.
kingston June 6, 2012 at 4:33 pm
Mr.Cherry, speaking from UAE is easy. . In india still 50% people in village side getting 1000Rs per month salary. . . Keep every one in mind and comment . . Communication is important to every one. . If communication become cheap every one use it. . @Cherry
Pratik June 6, 2012 at 4:16 pm
This is not about the service this is about infrastructure cost. Let assume that X company applied for license and government gave them license & spectrum in 900 Hz band for y circle. Company X has installed PPP amount of tower / repeater / mobile tower in Y circle for 900 Hz Band (Each company prefer to minimize their cost with higher quality HW).So PPP tower of company X is only support 900 Hz. Now government move all 900 Hz band spectrum to 1800 Hz band and creating artificial shortage of spectrum in 900 Hz band. Company Y has now only two option either buy spectrum in 900 Hz band with high price or upgrade their PPP tower to support 1800 Hz band which is hardly 3-4 year old(Addition cost to company).
The major benefit will go to the technology provider company like ZTE,Ericssion,3G…
Dr TD June 6, 2012 at 4:06 pm
cartel….. Reliance needs to get spectrum in 900 and 1800 ….. All old players are scared of this
Dr TD June 6, 2012 at 4:05 pm
artel….. Reliance needs to get spectrum in 900 and 1800 ….. All old players are scared of this
Sherin Joseph June 6, 2012 at 3:35 pm
@Ganesh,
You seems employee of some telco thats why you are supporting operators.
@Cherry i agree with your view , let the call rates increase but its not going to stop people from using it i completely support the governemnt at least hike in tariff might improve the quality of service what operators are offering .
Cherry June 6, 2012 at 3:20 pm
Refarming of the spectrum in very necessary in india. India becoming a powerful country in the world should also get updated with the technology advancements of the world. India is a commercial hub. Operators say that refarming will add burden to the customers like increased call rates. Even if the call rates increase subscribers who feels mobile service to be necessary will surely accept it. There are many people in india still giving missed calls to others with low call rates. Think Practically Be practical. Government has increased petrol prices several times this year. Even then people are buying new two wheelers and four wheelers. Is any one ignoring their needs. No. Like that this technological advancement is necessary in india and people will accept it in future.
Compare indian telecom industry with other countries of the world. You will see india is far behind. Other countries of the world have internet speed in GBps and 100MBps but in india there is no speed more than 50 MBps.
Indian Government’s decision of refarming the spectrum is the right at this point.
Ganesh June 6, 2012 at 3:09 pm
I will definitely go by the operators! But I am sure the ministers are going to give the green signal for the increased base reserve price. As there will be a good chance to loot them again. This can be stopped if the TRIO operators can bribe err lobby then with enough money!