RCom will have to pay Rs 5,600 crore for freeing 800 Mhz spectrum to DoT

By January 13th, 2016 AT 10:42 AM

The Department of Telecom (DoT) has asked telecom operator Reliance Communications (RCom) to pay Rs 5,600 crore for liberalizing 800 Mhz spectrum in 16 circles, according to media reports. As per rules, for liberalizing allocated spectrum the telcos are liable to pay market determined price for the spectrum license. The price will be determined on the basis of the remaining period left for the license use.

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Few months back, RCom had applied for liberalizing its spectrum in the 800 MhZ band and as a result, DoT had issued a notice to RCom on December 22, asking it to pay about Rs 5,600 crore.

RCom is yet to receive a notice for liberalizing spectrum in four circles—Kerala, Karnataka, Rajasthan and Tamil Nadu.
Earlier, the company was also in discussion to trade and share spectrum with Reliance Jio. Anil Ambani, Chairman, Reliance Group, had said that the company was in talks with RJio for spectrum trading and sharing.

He had said that the companies were in advanced stages of negotiations. For spectrum trading and sharing, telecom operators need to liberalize the administratively allocated 2G spectrum, which allows operators to offer latest mobile service, including 4G, using the spectrum.

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Having over six years of experience in business journalism, Krishna has a knack for writing on telecom and IT. She believes that tryst with technology is the best thing that has ever happened to the mankind. Krishna is a telecom analyst with CMR

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MADHAN KUMARAbishekColoradoJyotirmoy MannaSaket Recent comment authors
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Colorado
Colorado

There is no mention of the 16 circles that will be liberalised. Tarun, if you’re reading this, there are some missing pieces of the puzzle. If we look at the 850 MHz spectrum holdings of RCom, RJio & MTS, there are 3 types of circles: Type 1: only RCom & RJio have spectrum Type 2: only RCom & MTS have spectrum (MTS has 3.75 MHz) Type 3: only RCom has 5 MHz of spectrum . Type 1: Here RCom won’t need to liberalise its spectrum as both RCom & RJio will share RJio’s spectrum for LTE. Current RCom CDMA customers… Read more »

D.JAISANKAR
D.JAISANKAR

These 16 circles are exception of Kerala, Karnataka, Rajasthan
and Tamil Nadu circles.

Saket
Saket

Plz note that. Dot demanding this money to liberalised in those 16 circle, it will liberalised . Closing down CDMA business is more useful. As u can see that total number of handset supporting band 5 will more than those having CDMA 800mhz. @TT expert and writer I need to ask who is holding 1.25mHz of 800mhz spectrum which was used by HFCL few year back to provide PING mobile service in Punjab. Is it with videocon or with HFCL or reliance JIO, which acquired Infotel??? Secondly shutting down EvDo will make big hole to Rcom. As many subscriber using… Read more »

MADHAN KUMAR
MADHAN KUMAR

Yep that’s what HOSUR(T.N) RCom Retailer said too that RCdma services won’t stop anytime soon in T.N,but as per your post if RCom stops CDMA calling services many too also would be disappointed who were using RCDMA for calling purposes anyway only time will tell what would happen RCDMA business!

Abishek
Abishek

But, if they pay this much amount for liberalization of spectrum, won’t that increase their tariff also? They’re providing cheap services because they got the spectrum cheaply earlier… But now that they’re gonna pay heavily for liberalization, won’t prices increase atleast?

MADHAN KUMAR
MADHAN KUMAR

@Abhishek: May be they might increase the prices which only time would tell but if incase they increase RCDMA packs prices then they should upgrade to Evdo REV B in all areas where Evdo REV A exists and then only people would stay on their network!

Jyotirmoy Manna
Jyotirmoy Manna

A good analysis. Kudos!

Colorado
Colorado

Thanks!

Sunny
Sunny

My friend is using reliance gsm in kerala. Today Morning he check his offer by dialing *129#. He saw the offer Recharge with Rs.31 and get 1 GB data with 7 days validity. After recharge he got message Rs.31 recharge successful and 400 MB credited. When he checked his data balance by dialing *111*1*3# he was shocked to see only 200 MB credited in his account. When he contacted customer care they said no such offer is available now and told him to send the offer displaying screenshot by email.

Jyotirmoy Manna
Jyotirmoy Manna

Two instances I and a friend of mine faced once of Vodafone. Similar. The final thing I have arrived at ,after talking to their CC, is there is a case of upgradation/updation which is not always done at their end and customers suffer. After they update(they should have the like to do that) I got the total offer.

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