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Pan India telecom operators IDEA Cellular, Bharti Airtel, Vodafone Essar and The Cellular Operators Association of India (COAI) today expressed their concern over the TRAI recommendation to the six-fold increase in 2G spectrum prices.
Terming them as “Illogical, Arbitrary and Discriminatory” against the older telecom operators.
IDEA Cellular said in a statement that “We are dismayed by the continual flip-flops in policy formulation in the telecom sector, which betray a poor understanding of sector dynamics, as indeed of the immense contribution of the sector to the national well being.In the same breath, the principles of transparency and auction-based spectrum pricing are touted, whereas arbitrary and unreal administered numbers are sought to be portrayed as ‘market based’.
Even more curious is how total spectrum holdings are sought to be aggregated for some operators, but disaggregated for select others, never mind the loss to the exchequer or basic level playing field considerations.As a pioneering telco with sector investments of @ Rs. 34,000 Cr, we have only now wiped out losses accumulated over 15 years. We take pains to be a good corporate citizen.
Our sector unfortunately has seen many absurdities already. The goose that laid the golden egg of progress, is being led to slaughter. We can only hope that reason will prevail and a market driven mechanism will be allowed.
The 2nd largest Mobile Service operator Vodafone Essar stated that “The sector has already been impacted greatly by the illogical difference in treatment of GSM operators and so called dual technology operators, the 2G scam as reported in the media and the impact of the auction of (artificially scarce) 3G spectrum,”"Vodafone Essar strongly disagrees with TRAI’s new set of recommendations which are flawed, illogical and discriminatory against the operators who were the first to invest deeply to build the sector,” it said.
While the largest GSM operator in the country Bharti Airtel expressed similar concerns and steted “The recommendations by TRAI goes against the stated principle of the Government to offer affordability, fairness and level playing field. There seem to be huge inconsistency in terms of the differences of prices in various circles, which defies logic,”
Indian Telecom Regulator TRAI today recommended fixing the price for 6.2 Mhz of pan-India start-up 2G spectrum at Rs 10,972.45 crore, more than six times the present cost of Rs 1,658 crore.
Bharti Airtel, Vodafone Essar, Idea Cellular and state-run BSNL and MTNL, hold the extra spectrum beyond 6.2 Mhz and the new recommendations would put a huge financial burden on these operators.
Prasad February 13, 2011 at 9:54 am
If u enter Karnataka Plz DNT Buy IDEA worst service, network
imahesh February 12, 2011 at 4:25 pm
in mumbai vodafone network strength is good but every plan is waste.
Ex. If u want your voda at 1p/s plan then pay for rs 252 then u get. This comes if your previous 1p/s plan band then u get such sms from vodafone.
Abhijith February 12, 2011 at 10:59 am
Totally waste network is Vodafone . .
Santu Sovan Mandal February 11, 2011 at 12:12 pm
The decision of trai is excellent. And those who are worried about hike in the call rates should know that mnp is here & all operators need not to pay this fees. So any call rate hike if appears will be on temporary basis.
imahesh February 11, 2011 at 12:11 pm
vodafone is really villian in telecom industry.
Where is its network increase strength there u have problem with reliance network. Check in villages area u find it.
PD February 11, 2011 at 11:59 am
TRAI -
to IDEA : Our Idea can change your life too!
to Voda : Now you should be Happy to Help the Exchequer too !
to Airtel : If you pay large amount and be the largest GSM payer here too !
to ALL OTHERS : Pay fine and feel fine !
Keshav Jha February 11, 2011 at 11:39 am
It seems that golden time for subscribers is over. Now tariff will be increased in coming days…
ARJUN CHANDRASHEKAR February 11, 2011 at 11:38 am
@Amit.G
AIRTEL HAS GONE MAD, I’M USING AIRTEL INTERNET IN MY HOME USING WIRELESS NIC AND THE INTERNET SPEED IS GONE VERY BAD. EVEN I CAN’T ABLE TO ACCESS YOUTUBE OR GOOGLE ON MY PC
Amit.G February 11, 2011 at 9:36 am
Though 2G spectrum pricing is not fair for new operators like Docomo and uninor who have been just given 4.4mHz of start up spectrum but it is very fair wrt to old operators like airtel n vodafone who holds upto 35mhz of spectrum in some circles.
these operators are not making efficient use of it.
Efficient usage of spectrum can be done by installing more bts in crowded areas but these biggies want to gain as much money as they can. but anyhow we may now witness hike in tariffs from all players!!!
Karthik Kumar V G February 11, 2011 at 8:20 am
Very good recommendation. Don’t know why these old cry now…they have already enjoyed the max benefit now it’s time for them to repay what they have gained (looted) over the years in Indian telecom industry. Also I still feel the price mentioned by TRAI is still cheap only…
Mane February 11, 2011 at 6:51 am
How can rcom finish?
DOCOMO February 11, 2011 at 4:09 am
though reliance is the worst in quality, it has changed the whole tarrifs
thanx reliance
DOCOMO February 11, 2011 at 4:02 am
voda is really the villian of the telecom industry
DOCOMO February 11, 2011 at 3:59 am
whatever be the case, 6 fold increase is not justified
3-4 times is ok
Kaushik Roy February 11, 2011 at 12:30 am
RCOM WILL BE FINISH
Huxley Dcruz February 10, 2011 at 11:32 pm
I fully agree with the TRAI’s recommendation to increase 2G spectrum prices by six-fold, because a scarce product like spectrum should be priced higher to increase efficient use of it and create competition in the Telecom Sector.
This will in turn will force some of the inefficient Telecom Providers to return Excess spectrum to reduce burden.
A stiff healthy competition is necessary in every field to increase efficiency.
Kanaga Deepan N February 10, 2011 at 11:28 pm
GOOD One… You got the point…
Sampad February 10, 2011 at 11:26 pm
Whatever TRAI has recommended,its simply brilliant.These 3 companies are the oldest and holding extra spectrum.Beside this it is to be kept in mind that these 3 charging the highest price in the industry.So at least contribute to the Govt,it will be TIT FOR TAT for these 3.And some people are telling Prices will go up.OK.Let them do it.Don’t forget MNP is there.
Raghu February 10, 2011 at 10:00 pm
@PD
thanks for the clarification and Justice will prevail at last.
PD February 10, 2011 at 9:51 pm
@Mane
@Raghu
Don’t worry at all ONLY THOSE WHO made under-table payments will have to bear this additional burden. Also we have umpteen options, thanks to MNP….. The popular phrase being used by all when cornered “Law will take its course” and “Justice will prevail” are pertinent here !
killer February 10, 2011 at 9:42 pm
the crimes of the likes of a raja have not effected the common man DIRECTLY, but the crimes like unjustified balance deductions specifically by AIRTEL is definitely affecting the common man so atleast airtel should be made to pay the penalty compulsarily, dont worry about tarrifs, MNP is here and subscriber have many better options than airtel
PD February 10, 2011 at 9:41 pm
===============================
“….Our sector unfortunately has seen many absurdities already…..” – IDEA Cellular
“The sector has already been impacted greatly by the illogical difference in treatment of GSM operators …….., the2G scam as reported in the media (sic) and the impact of the auction of (artificially scarce)(sic) 3G spectrum – Vodafone Essar
“The recommendations by TRAI goes against the stated principle of the Government to offer affordability, fairness and level playing field. There seem to be huge inconsistency in terms of the differences of prices in various circles, which defies logic,” Bharti Airtel
===============================
Now the Table is Turned – and therefore these operators’ concerns are very much understandable.They should cartel themselves and ask for refund from the Scamster Raja and his cohorts (including TRAI’s Baijal)! We don’t mind shedding crocodile tears…!!!!
sai kiran February 10, 2011 at 9:39 pm
These operators boast of their services that they are better than others,but they conceal the fact that they were able to give these better services,with extra bandwidth they got at ultra cheap rates.Fine that,TRAI is atleast now trying to create level playing ground
Agnivo February 10, 2011 at 9:32 pm
Seems in the post MNP era, the operators will be grouping up to introduce an universal tariff regime say 1p/sec or 50p/min flat to have a level playing field so that they could make up some investment and abrupt taxation (like spectrum fee hike) by the govt.
Raghu February 10, 2011 at 9:23 pm
@Mane
yes tariff prices will go up and put a lot of inconvenience to the customer if theyu hike the tariff. DOT have to stop this recommendations i suppose.
Mane February 10, 2011 at 9:18 pm
Mobile service will not cheap in future cheap if spectrum price is so high.
sujai February 10, 2011 at 9:15 pm
you are not giving any offers to customers
atleast pay some of your profit to government