TTSL bucks the trend, says easing of spectrum cap will trigger unfair competition

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Telecom services provider Tata Teleservices (TTSL) has said in a presentation to the Department of Telecom (DoT) that a relaxation of caps would lead to unfair competition in the industry, the Economic Times reported. However, telcos such as Bharti Airtel and Vodafone have favoured the relaxation norms as it would facilitate the sharing and trading of airwaves.


Currently, a firm cannot hold over 25% of the total spectrum allocated across various bands in any circle and over 50% of the airwaves in a particular band being shared/traded.

“The reason for opposition could be that it will give companies such as Bharti Airtel and Vodafone more leeway to buy or share spectrum with smaller players that are potential partners for Tata Teleservices,” the report said.

Recently, the Viom Networks stake sale has come as a big relief for Tata Teleservices, which has Rs 34,000 crore of debts on its books. Even though the company was first to start its services in wireless telephony, it has been one of the worst performing companies.

Also read: Telecom commission gives in-principle approval to TRAI’s recommendations on calculation of spectrum caps

Tata Tele’s revenue rose to Rs 10,944 crore in FY15 from Rs 10,452 crore in FY14, when the Tata group invested Rs 2,500 crore via convertible preference shares.The company had made record losses to the tune of Rs 6,166 crore in FY14.

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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 mankind. Krishna is a telecom analyst

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