The 2015 Spectrum Auctions might turn out to be the biggest auction and fill the Exchequer to the Brim

By October 15th, 2014 AT 2:41 PM

India’s major operators are facing major setback due to the delay in the spectrum allocation they had won in February this year. Department of Telecommunication (DoT) is planning to offer 2,100 megahertz (MHz), 2300 MHz and 2500 MHz to the spectrum auction next year making it one of the biggest auctions in the telecom industry.

DoT is expected to send an official note to the Telecom Regulatory Authority of India (TRAI) suggesting a reserve price for the spectrum. It is also contemplating on reducing the validity period of the licenses from the current 20 years such that they can control the prices more frequently.

This sale could generate a whopping Rs. 2 Trillion for the  state exchequer. In the hindsight, the revenue earned by the government in November 2012 and March 2013 auctions was less than what they expected.

Indian Government should learn a bit from the Dutch and the South African auctions which failed miserably due to the lack of interest in the unpaired frequencies and the spectrum caps. The spectrum caps were set to safeguard the interest of the new entrants which is a good thing but if we analyse the bigger picture, the chances of these spectrum remaining un-allocated increases. The consumers will end up bearing the brunt of increasing tariffs as it is natural for the Telecos to recover the investment on the spectrum.

Mahit Huilgol is a Mechanical Engineering graduate and is a Technology and Automobile aficionado. He ditched the Corporate boardroom wars in the favor for technology battle ground. He is also a foodie by heart and loves both the edible chips and non-edible silicon chips.

Leave a Reply

Photo and Image Files
7 Comment threads
2 Thread replies
Most reacted comment
Hottest comment thread
8 Comment authors
kapilDarshanTharun GeorgesachinSudhakar Recent comment authors
newest oldest most voted

We should get togather organise and protest or challange in court. We voted on false promise of ”asche din”. But we are now getting ‘mehenge din’. Government and telecom companies will earn thousands of crores which will come out from pockets.


Pan-India mobile number portability from March 31

Recent Posts

Asus 6Z With Flip Camera, Snapdragon 855 SoC Launched at a Starting Price of Rs 31,999

Taiwanese manufacturer Asus today debuted its latest flagship smartphone, the Asus 6Z. The phone which was launched as the Asus...

Global Smartphone Market Dips 8% in Q1 2019: Counterpoint

The global premium smartphone market has collapsed 8% in the first quarter (Q1) of 2019 as Apple shipments plummeted 20%,...

After Trai Tariff Regime, Subscribers Turn to OTT Apps Due to Increased TV Bills

As the days passed after the implementation of the new Trai tariff regime, the subscribers waited for the good effects...