Mobile Operators Opposes TRAI’s High 2G Auction Base Price, Call Rates May Rise upto Rs.5 Per Min

After burning hands in the 2G and 3G spectrum allocation, India’s Mobile service operators are now standing more to lose. Most of operators have opposed sectoral regulator Telecom Regulatory Authority of India’s (TRAI) recommendations of a base price for auction of 2G spectrum that is higher than the 3G price set in 2010.

TRAI’s move may also hurt Uninor (Telenor) and MTS India (Sistema Shyam Teleservices) which had lost 2G licences after SC canceled 122 licences awarded by Ex telecom minister A.Raja and were planning to rebid. Even leading mobile service providers like Vodafone India & Bharti Airtel which have been around since 1994, could be hit.

Some telecom experts who are unhappy with the TRAI’s recommendations says if mobile service providers were to start charging for the kind of bids at high rates, mobile call rates for Local and National may go up to Rs.2 to Rs.5 per minute from current tariff as low of 30p to 50p per minute.

In first reaction on TRAI’s recommendations, country’s leading mobile service provider Vodafone India said in a official statement ” We believe that several of these recommendations are retrograde and if accepted, will do irreparable harm to the industry. It will hamper the ability to connect the unconnected and goes against the objectives of National Telecom Policy of ensuring improved rural tele-density and right to broadband.”

GSM and CDMA operators association – COAI and Auspi issued a joint statement criticizing TRAI’s recommendations “Trai’s actions seem to be directed towards creating unnecessary constraints for the sector, overlooking the universal rules of sustainability and growth for this sector. Under such inconsistent, regressive and uncertain regulatory environment, it is inconceivable that the telecom industry, which is already in a state of doldrums, will be able to deliver on the Government’s vision of affordable communications, rural penetration and roll-out of data services.”

However, TRAI Chairman JS Sarma said that Telcos have to utilize spectrum efficiently, high quality spectrum cannot come cheap. We have liberalised the spectrum, therefore it is capable of taking up any technology and you are not constrained by GSM technology. So, that is the reason why we have done that.”

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  • aashish August 8, 2012 12:57 pm

    what will u do if all of tem pool inside

  • Asit Paul August 7, 2012 4:47 pm

    Spectrum is a natural resource. UPA or TRAI has not invented it. So the base price should be low. Let Auction decide the Maximum price.

    What the hell with this UPA and TRAI? Why they sucking blood of common men? Mobile is not a fancy product now, its an essential for day to day life. If base price are high, telecos will pass it to consumers and ultimately the common men will suffer.

  • AJ April 27, 2012 5:12 pm

    @siva
    Great analysis Siva :)

  • dskushwaha April 27, 2012 6:19 am

    Emad :
    The Salary of TRAI employees should be decreased in the interest of country growth because a man who spends 23 Rupees Per Day is not poor.
    So Salary of MR. J Sarma Should be not more than Rs.690 /-
    Than only he can serve the country well
    a man who spends 23 Rupees on food how he can talk a few minutes at the cost of his dried bread in famine of India.

    Once upon a time there was a poor family. Husband, wife and their children were too poor. They had only one servant, Gardner, driver, Gaurd in their house. They all were poor. They even didn’t have uniform to wear.
    Besides them there were two dogs in their house. They were also poor. They hadn’t eaten Mutton since last two weeks.
    There were 3 mercedeez cars for them all of them very old and servicing was due for them. They had 2 ACs in there house and it was also not running well. House require painting since last 1 year. 2 out of 5 TV sets were out of order.
    The last time they went on foreign holiday was two years back.
    In short they were too poor to survive.

    (In short poor don’t even have FOOD/SHELTER/CLOTHS, Are you listening?)

  • Keshav Jha April 26, 2012 12:23 pm

    It seems TRAI has gone totally mad… Why should Indian pay more for their own resources??? Why GOI wants so much money from us??? It looks like we will have to drive someday our own car by paying fare to GOI… Our resources should be used for welfare of us not for looting us…

  • Nikhil April 26, 2012 12:20 am

    i’m not experienced in this field …My doubt is whether bsnl hs 2 pay anything for spectrum..if not they can provide cheap call rates…. tis all r ti looters [airtel,voda ,idea ] trick to panic ppl….As pep our pri minister market wil decide the price …anyway new comers like docomo,aircel,reliance will get a chance to compete …tis many days wilth low arpu they struggled& sustained…they hv investedlot of money in bulding up infrastructure,licence fee ,bribe ..etc…etc… nw tis biggies only need to renew their licence..let them pay …. i even rembember when escotel [nw idea cellular] started their service in kerala they even charged me for incoming calls… i hate tis three biggies…Destroy their monopoly in telecom filed…if they cant pay ti base price let them shut down and move away for new players

  • irfan April 25, 2012 10:23 pm

    the govt has gone mad since a raja was sent to cbi investigation the govt is trying to retaliate its ex minister fault to recover losses from the comman man the best option for the operators at this point of time is not to participate in the auction process

  • siva April 25, 2012 10:10 pm

    This is a misconception spread by the telecom companies that if 2g spectrum is sold at such a higher rate call rates can not be restrained to present levels…..actually leading companies like voda(previously essar and hutch) and airtel have been operational since the very start of the telecom boom in india and they have made billion of bucks since then…..also they have already built a vast telecom infrastructure over this period of time…so they need not spend on equipments….their only expense is licensen fees, equipment maintenance & operation and the wages that they give to their employees……with 25k odd ppl working with a giant like airtel the wage bill forms a meagre share of their total revenue….rest of the profit they invest in other sectors like retail, entertainment….all in all they are just protecting their business ambitions when they say raising cost of license fees will raise the call rates….they should understand that if they are using spectrum which is the national asset and countrymen have made them grow…its their responsibility to efficiently utilise this national treasure and avoid putting the burden of their commercial ambitions on common man….even if we consider that politicians will make lot of money in fresh auctions atleast the funds shown on papers and earned in this auction will strengthen the exchequer of our country

  • Sudhakar April 25, 2012 8:53 pm

    Abeer,
    Well said. We have to stand in queue to make STD call during half and quarter rate !!!!. Olden days are going to come.

  • abhijith April 25, 2012 8:30 pm

    NICEEEE……. JAI UPA ……………

  • Udayan April 25, 2012 8:04 pm

    New STVs from AIRTEL & VODAFONE in 2G:

    Recharge with Rs. 201/- STV and call onnet numbers @Rs. 2/- per minute and offnet calls @Rs. 4/- per minute…Incoming calls are chargeable @Rs. 1/- per min while in Home Network..Validity of STV is 10 days!!!!!!!!!!!

    This offer is valid from 01-01-2013 to 31-01-2013…Hurry..!!!

    Now be ready for these type of offers to reduce your call rate…!!! :-(

  • Emad April 25, 2012 6:29 pm

    The Salary of TRAI employees should be decreased in the interest of country growth because a man who spends 23 Rupees Per Day is not poor.
    So Salary of MR. J Sarma Should be not more than Rs.690 /-
    Than only he can serve the country well
    a man who spends 23 Rupees on food how he can talk a few minutes at the cost of his dried bread in famine of India.

  • Sahil April 25, 2012 6:17 pm

    All the wealth of India is going out of country swis banks
    This move is also the same kind of greed suck the blood of people and become rich
    Politicians are eating all the money
    Only common man have to live in crisis

  • naveen hegde April 25, 2012 4:04 pm

    I think bank plan to issue new type of lone called ‘mobile call loan’ to mobile user.
    when this loan available than only users able to make call or msg ;) by this high rate,
    peoples are hesitate to give mis call also……..!

  • dhashd April 25, 2012 12:54 pm

    Don’t purchase spectrum at such a high price. Otherwise you people will not get customer’s as it happened in 3G case. So you money will be wasted stay away from this auction. If there is no purchaser for the spectrum Govt. is bound to reduce the price to some realistic level just like 3G operators, when they didn’t get the customers, have started reducing price after some 1 year of launch of operation

  • Abeer April 25, 2012 12:03 pm

    Hurray!!! Rs. 7-8/min outgoing and possibly Rs. 2-3/min incoming days will be back soon!!! Bye bye mobile, once again hello Land line!!
    Our “respectable” and “Educated” govt and TRAI are pushing us to pre-independence era :) Way to go TRAI!!

  • Raghu April 25, 2012 11:27 am

    @ashokumar
    definitely Infotel will give damn cheap prices no doubt at that.Others have to follow suit by decreasing the rates otherwise they will be not in the market.

  • trinath April 25, 2012 11:14 am

    corporates are showing their true colour in telecom sector and it is in the media. earlier businessmen were doing such bargains behind the closed doors, now they are in the open. that is the difference. regarding profit/loss it is only a fool who will put his money if doesnt make sense, imagine these very people fed the babus and ministers till date(with black money?) and are crying foul now.can you imagine (just imagine) 10% of 1.76lakh crores.that is the loss they can never admit.

  • ashokumar April 25, 2012 11:06 am

    yesterday’s news papers stated that Mukesh Ambani led infotel is going to set up 100000 new towers for their upcoming 4G services without depending on any other tower cos. once their service starts they can easily give VOIP at damn cheap rates, so there won’t be any other competitors if the call rates are high. So I suspect that TRAI’s move is favouring Infotel.what do you people think? please comment…

  • Vicky April 25, 2012 10:09 am

    Hon’ble Supreme court, trai and indian government u all 3 are responsible for it. At a single time only one works, pahle ek (govt) ne aankh band karke licence diye, after a long time 2sre(court) ne pahle k orders ko cancel kar diya, and now 3sre(trai) ki baari with new high price spectrum.. In 3no me se, Ham users ka kise khyaal hai? Galti govt ki hai, penalty v use hi bharni chahiye…

  • dskushwaha April 25, 2012 5:32 am

    My advice to the cellular operators:
    Don’t purchase spectrum at such a high price. Otherwise you people will not get customer’s as it happened in 3G case. So you money will be wasted stay away from this auction. If there is no purchaser for the spectrum Govt. is bound to reduce the price to some realistic level just like 3G operators, when they didn’t get the customers, have started reducing price after some 1 year of launch of operation.
    :-D

  • Himangshu April 25, 2012 2:21 am

    Hello, bro. u all see, after 1 years, no one will take cell phones, they would go to the local PCOs, that was in the long time, years back….

    Good Going. INDIAN GOVERNMENT….
    PROUD OF INDIA….
    going down and down day by day…
    Keep it down…

  • Roy April 24, 2012 11:06 pm

    Mr. Bafna, is it your speculation that call charges would shoot to Rs. 5 per minute or was it communicated to you by, say, Airtel?

  • sayan April 24, 2012 9:56 pm

    uninor will shut down for sure..

  • Susanta April 24, 2012 9:40 pm

    Dont worry. They never hiked their call rates if u recharge Local packs+std packs+sms pack nd net pack per month . Its cost would be approx more than 300+ . Bcoz TRI alredy try to presure evry operator wont abl to give xtra offer in patticular recharge. Now open ur all vocubulary partion grammar book to practice letter writing. It is 2012 all low cost things will b destroy very soon. BoooM……

  • KETAN April 24, 2012 8:21 pm

    IF 2G LICENCES ARE VERY COSTLY FORGET IT GO FOR 4G. BECAUSE IF NO ONE BIDS FOR 2G LICENCE THEN THE CORRUPT POLITIANS GOVT. WILL HAVE TO BENT DOWN THE SPECTRUM FEES. DONT WORRY AGAIN THIS MINISTER WILL GO AND ANOTHER WILL COME WITH A NEW WAY TO LOOT THE GOVT TREASURY AND MAKE ECONOMY BEGGAR.NO ANNA HAZARE CAN STOP THIS TSUNAMI. ONE HAS ALREADY DESTROYED JAPAN AND ANOTHER IS WITHIN THE INDIAN ECONOMY.

  • sAM April 24, 2012 7:39 pm

    Probably we can see in d near future dat d only person in d country who was actualy not involved in d 2G scam is Mr A RAJA..

    LOL !!!!!

  • bharat April 24, 2012 7:27 pm

    If this spectrun is not for 2g then the rates are cheap . Us has 4g on 700MHZ . New tecos can launch 4g

  • PD April 24, 2012 5:34 pm

    prasad :
    A.Raja already collecting lot of amount from telecom operators , First collect that amount Indian Govt from A.Raja (Ex telecom min) save Indian peoples and telecom industry.

    U said it. Not only from Raja, there are many other looters ! Confiscate the wealth/cash/properties of those leeches live in India and also bring their cash stashed in foreign banks. There will be an all round progress in every walk of life. Thanks Raja episode opened the can. But we can least expect this step from the those at the helm of affairs as of now ! But with hope we have to move on ! Those who were after Annaji and his crusades are in one way or other now face the music and many will be caught with their pants down !

  • ankush April 24, 2012 5:30 pm

    Jai ho congress govt. ki…. if you want to move us in older tym lyk local call from PCO=rs.2 and min STD = Rs 3.20 plz roll back the price of petrol to rs. 17 also…

  • shabir ahmad April 24, 2012 5:29 pm

    Just Recieved An Sms On my Idea Lapu Number Informing Me That: Dear Retailer With effect from 24th april 2012, all products validity has been changed from days to weeks

  • VB April 24, 2012 5:25 pm

    @all those who think TRAI has taken good step:
    1st of all dont forget its price per MHz. And the ppl whos gonna take up huge amt of money are the biggest looters of world-CONGRESS( much dangerous than smuglers,theif, terrorists etc). What you think guys? Only A raja was involved in 2g scam? wel i m sure whole congress was involved in 2g scam. Its not difficult for big ministeres to destroy proofs. Anyways 4get that. but whatever is goin to happen is surely disastrous. :(

  • Saurabh April 24, 2012 5:05 pm

    DJ :
    @Saurabh
    The Government cannot do anything. If the Government has idea to reduce the spectrum fee, it is mandatory to send the consent of the TRAI…. So Government cannot do much in this issue….

    The Government cannot do anything.

    Really??? We all seen what Govt. did last time during A. Raja’s regime. TRAI recommended allocation of spectrum thru auction process and Govt. went ahead with older way of FCFS. So, it will be PM, Kapil Sibal and Finance Minister Pranab Da or the EGOM constituted who will take the final call whether to go ahead with TRAI recommendation or bring the base price down. So stay calm, India will not see call tariffs go beyond Rs.1 ever in near future.

    Chill maaro yaar aur tamasha dekhtey raho UPA ke tamaashbino kaa.

  • amit pandey April 24, 2012 4:47 pm

    It is the one of the worst govt in the world. In my opinion all telecom operators make themselves unite and shut down their operation for one day. Then only this idiot govt realize..

  • VB April 24, 2012 4:35 pm

    Abhinesh :
    It is beyond my comprehension as to why this so called government is hell bent on looting Indian people in the name of revenue. Whats the point of trying to collect money in a pocket which has a HOLE?? Where will all that revenue go?? To public welfare or in SWISS BANK!! This is nothing but bullshit….

    absolutely right. Its time to kickoff congress govt from india, otherwise this lootera govt will bring all common man down to helll.

  • Praveen April 24, 2012 4:33 pm

    This is the way of govt says if you oppose and make a hay out of scams (2G scam), we know how to get money from u OFFICIALLY and again eat it in name of some wasteful aam admi program

  • Abhijit April 24, 2012 4:06 pm

    This is one of the major way of the Govt. to earn so much revenue which will be utilized in upcoming LOK SABHA election in 2014. :(

  • Swarup sen April 24, 2012 3:48 pm

    Ye sarkar ka kam hai.Pahele mobile ko failaya or is bar uska jo marji wo karega.

  • debashish April 24, 2012 3:12 pm

    congress govt is fraud….fucking common man’s life by raising the prices of all day to day commodities…..they will also fill their pockets with this 2g auction prices….all congess leaders are fraud.they are draining money of the common man to fill up their swiss bank accounts…bloods swines

  • kuttu April 24, 2012 3:00 pm

    tell them to f**k them self.instead of raising price… if its so then people will use internet voip call… 60p/min call rate and net charge 40p.. then it will be 1rs per call … so net call is best….

    every one can purchase the voip calling card via internet..

  • myself April 24, 2012 2:51 pm

    I’m with the operators on this one, as far as voice calls are concerned the quality and tariffs are the best when compared to anywhere else in the world.

  • sai kiran April 24, 2012 1:54 pm

    if spectrum price is high then call rates will be like this

    local calls- 5rs/min
    national calls-10rs/min
    sms-5/mess
    gprs-2rs/KB

    govt should fix the base price keeping in the view of common man…!!!

  • DJ April 24, 2012 1:34 pm

    @Saurabh
    The Government cannot do anything. If the Government has idea to reduce the spectrum fee, it is mandatory to send the consent of the TRAI…. So Government cannot do much in this issue….

  • Jagan T April 24, 2012 1:23 pm

    There may be a chance to pay for the incoming calls also due to this greedy move.

  • Chintoy April 24, 2012 12:48 pm

    If this happens and call rates go upto Rs 5/min.I think the pager era is surely coming back to india.

  • Saurabh April 24, 2012 12:45 pm

    Nothing like this will happen. These are just recommendations and not the final decision. Government will throughly analyze this and come up with a solution tat will benefit each and everyone from consumer to operators. So, stop over-reacting.

    Soumen Ghosh :
    Mobile ko missed call denekaliye aur call receive karneka saman banane ka chakkar me hai yeh log, jayse suru me tha!

    Incoming??? Do you really expect anyone to call you if rates will be as high as Rs.2 or Rs.5. lol Every incoming call has an outgoing source.

    Voice is least used feature in my phone. 90% of my total mobile bill is for data only and 10% for voice. Nothing for text. Voice users need not to worry as no hike will be there until 2013.

  • Abhinesh April 24, 2012 12:42 pm

    It is beyond my comprehension as to why this so called government is hell bent on looting Indian people in the name of revenue. Whats the point of trying to collect money in a pocket which has a HOLE?? Where will all that revenue go?? To public welfare or in SWISS BANK!! This is nothing but bullshit….

  • Ravi April 24, 2012 12:39 pm

    What trai has recommended is absolutely rigth. Telcom service providers are making noise to get these recommendation nullified, If we really calculate the tariff with respect to the increased price and the profit the indian operator’s are making for last so many years,it should not increase more than 5 %.It will be even less.

    As far as the services in the rural side is concerned,Why not the operators purchase the indian manufactured low cost solution in GSM. There aremany companies in india which specifically manufacture the GSM and Broadband solution for Rural places only.

    But There is no one who could promote these indigenous manufacturers and throw out these big companies,who has monopoly and taking away the huge amount of indian money.

  • Anirban April 24, 2012 12:37 pm

    Chori kare ek sarkari chor aur uska vukhtan kare telecom operators and specialy humlog(in sarkari term aam admi) bcoz ghuma firake yeah operators humse hi yeah paisa wasul karega.

  • Anuj April 24, 2012 12:34 pm

    Ye congress ka Raaj me ek calling hi toh cheap thi use bhi ye log mehenga kar rhe hai. Congress bhagao desh bachao

  • M S April 24, 2012 12:26 pm

    badi ghri chal hey bheiya market mey news plant karo our fir call rate hike karo.,airtel ,idea ka trai ke sath new alliance hey

  • kashif April 24, 2012 12:12 pm

    fully faaltu…
    what trai is thinking… so bad for all Indian please wake up

  • Devraj April 24, 2012 12:02 pm

    This will not happen

    If Happens Congress government goes to home

    Even if call rates goes to Rs1 per minute then usage drops by 10 times

    We are paying heavily for petroleum because we import
    In our country if one thing is costly then other should be cheap if all are costly how people can live

    Is TRAI for consumer or for Government

  • prasad April 24, 2012 11:56 am

    A.Raja already collecting lot of amount from telecom operators , First collect that amount Indian Govt from A.Raja (Ex telecom min) save Indian peoples and telecom industry.

  • Soumen Ghosh April 24, 2012 11:54 am

    Mobile ko missed call denekaliye aur call receive karneka saman banane ka chakkar me hai yeh log, jayse suru me tha!

  • pankaj April 24, 2012 11:52 am

    Crap now we will hav to adopt skype and gtalk…

  • hardeep April 24, 2012 11:46 am

    why didn’t TRAI come up with same recommendations and pricing when earlier the same licences were sold of for much less? what a country we are living in….. there’s absolutely NO LAW!