Refarming Spectrum To Impact Connectivity and Consumers

The Telecom Regulatory Authority of India’s proposal on spectrum refarming will have a substantial cost to the industry, including an increase in tariff that would inconvenience to consumers in coming days, with no benefit to stakeholders.

According to the study, the implementation of current refarming recommendations will require replacement of 286,590 existing 900 MHz base stations with 1800 MHz equipment.

This is in addition to deployment of 171,954 new base stations on 1800 MHz to fill coverage gaps this will result in an incremental capital expenditure.

The maximum harm will be to the rural consumers, the already connected, as well as the large population of waiting to be connected, Analysys Mason, a London based market intelligence firm, said in a study which was commissioned by Bharti Airtel, Vodafone India and Idea.

If the incremental investment in refarming and the costs of spectrum are passed on to consumers in the form of enhanced retail voice tariffs, the overall tariffs will go up by as much as 64 paise per outgoing minute (30 paise due to refarming and 34 paise from spectrum investments).

So as a reader what’s your take, How big do you think this will impact on consumers and common man like you and me? Do share your views via comments.

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27 Comments on "Refarming Spectrum To Impact Connectivity and Consumers"

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Saptarshi Roy
Saptarshi Roy
June 7, 2012 9:43 am 9:43 AM

SOUMYARANJAN BISWAL :
I think non of them is advantageous though
In 900Mhz it is More Coverage Less Channels – Suitable for Rural
In 1800MHz it is more Channels Less Coverage – Suitable for Urban

I could be wrong but I think its just the opposite. 900 Mhz is suitable for urban and densely populated areas as it can penetrate thick walls and similar structures. On the other hand 1800Mhz can provide wider coverage suitable for rural and sparsely populated areas.

Please correct me if I am wrong. 🙂

Anirban
Anirban
June 6, 2012 7:17 pm 7:17 PM

I know that but want to know about its spectrum price ? Is it increased? @Saurabh Jain

drkavint
drkavint
June 6, 2012 7:10 pm 7:10 PM

funny india,
where mobile rates are too low… milk rate is too high….
government afraid to hike call tarrif by 30 p, but will increase petrol by rs.7…
3g is still heaven high,, 2g is too low…
increase tariff but give us clarity…
kill china handsets.. kill high radiation towers… promote cdma and post paid connections…
improve quality dont think of quantity

Ganesh
Ganesh
June 6, 2012 12:57 pm 12:57 PM

@SOUMYARANJAN
Correct.
900MHZ has more range. That is one tower can cover 4 to 6km. Usually deployed in rural areas and highways.
1800MHZ has less range. But more capacity. Usually deployed in dense urban areas.

I think the operators should not be forced to vacate 900MHZ spectrum but in addition to 900MHZ they should be given 1800MHZ too.

Gourav
Gourav
June 6, 2012 10:44 am 10:44 AM

@kingston
Govt. just taking what thay loosed in last auction…Operators weepings are just to make more profit which thay are making n not giving the exact figures to govt..
I thinks its justified for operators to pay a bit more to govt..
instead of spending Crores on Advertising n Media….

kingston
kingston
June 6, 2012 9:24 am 9:24 AM

Waste and foolish move by Indian Telecom. Instead of this They try to force (or create a law) the incumbent player to install additional towers in Rural areas or charge extra price for 900Mhz spectrum. What is your opinion my beloved TT fans?

Syam
Syam
June 6, 2012 6:19 am 6:19 AM

If the refarming happents I would like to port my number to airtel ,if the airtel has got the spectrum in 900 mhz in kerala circle. Currently idea, vodafone and bsnl has got 900 mhz in kerala. Rest other gsm operators are in 1800 mhz.

hasbin
hasbin
October 30, 2013 1:34 pm 1:34 PM

is it airtel is now in 900mhz in kerala??

Gourav
Gourav
June 6, 2012 3:58 am 3:58 AM
K Sudheendra Rao : This is absolutely absurd logic.Imagine with this it self the new operators do earn profit(no body does business for charity purposes), how much money must have been made by these incumbent operators! now when profits are being asked to be shared with other company and the govt. they are playing with all these kind of tricks(tariffs will increase publicity!). Still can you recollect the fact that these are first companies to raise the tariffs even though new ones almost remained at the same. now they want to increase further and hence giving some logic to fool… Read more »
Saurabh Jain
Saurabh Jain
June 6, 2012 1:48 am 1:48 AM

MTS and All other CDMA operator will remain on same 800Mhz Band. 1900 MHz Band is yet to be Vacant by defense Forces

Saurabh Jain
Saurabh Jain
June 6, 2012 1:46 am 1:46 AM

It will remain on 800Mhz Band
As 1900 MHz Spectrum yet to be vacant by Defense Forces @Anirban

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