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Telcos to increase the mobile tariff after the February spectrum auction

Telcos to increase the mobile tariff after the February spectrum auctionThe telecom operators are set to revise the tariff for various plans citing the debt they will incur after the spectrum auctions scheduled to take place next year in February. This news came out with a statement of, telecom industry body Cellular Operators’ Association of India (COAI). As reported by IANS, COAI said, “The debt burden in the sector is huge. It is already around Rs 250,000 crore and a part of it accrued after the last spectrum auction in February, 2014. If the airwaves are sold in the upcoming auction in February, 2015 at the reserve price mentioned by the Telecom Regulatory Authority of India (TRAI), then there will be additional debt burden of Rs.40,000-50,000 crore on the telecom sector.”

 

TRAI has already recommended 10 percent of hike in the price for the next round of spectrum auction for the 1,800 Mhz band. The regulator also mentioned earlier that in the 900 MHz band, only the spectrum held by them is available for the auction. These licensees will have to win back this spectrum to ensure business continuity in a licence service area (LSA); if they don’t, it places the large investment made in the LSAs in peril.

 

The regulator has suggested the price of Rs 3,004 crore per megahertz for premium 900 Mhz band, in which mobile signal covered about twice more area than 1800 Mhz. In the 900 Mhz band 18 circles will be auctioned and in the 1800 Mhz band 20 circles will be put to sale. The regulator also stated that 1.2 MHz spectrum in 900 MHz band should be taken back from BSNL from all the LSAs where licences expire in 2015-16 except in Punjab.

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Heena Gupta

A reader at heart, this girl loves to express through writing. Her ears perk up as soon as she senses any tech molecule in the air. With the ability to use and navigate typical technologies she becomes a complete tech enthusiast. This post graduate in Mass Communication lives in the world of gadgets. Fiction, history and cartoons keep her busy in the free time. Her urge to grow mixed with excellent writing skills forces us to have her as a part of our workforce.

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