ID :
158389
Sat, 01/29/2011 - 23:13
Auther :
Shortlink :
https://oananews.org//node/158389
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Indian mobile tariffs may go upward
Mobile tariffs may go upward; spectrum delinked from licence
New Delhi, Jan 29 (PTI) In a major shift in policy that
may make mobile telecom services costly, Indian Telecom
Minister Kapil Sibal Saturday said henceforth all operators
would have to pay market price for initial as well additional
spectrum.
Delinking spectrum from the licences in the aftermath of
the 2G scam that rocked that country, Sibal said, "In future,
the spectrum will not be bundled with licence. The licence to
be issued to telecom operators will be in the nature of
'Unified Licence' and the licence holder will be free to offer
any of the multifarious telecom services.
"In the event, the licence holder would like to offer
wireless services, it will have to obtain spectrum through a
market driven process," he told a press conference.
As of now the telecom operators were getting spectrum
bundled with the telecom licenses which had paved the way for
low tariff regime and intense price war among the service
providers.
But now, the new operators, if their licences are held
valid, would have to pay a market price for the additional 1.8
Mhz of 2G spectrum and this may make their operations
financially unviable.
For the old operators like Bharti, Vodafone and Idea, who
are holding spectrum beyond 6.2 Mhz, they would have to pay
market driven price for the extra airwaves.
These changes would be implemented with immediate
effect, Sibal said.
One of the new operators, when contacted, said that the
new regime has given a major advantage to the old operators by
allowing them to retain 6.2 Mhz of spectrum while the new
operators would be at loss as they have to pay market price
for the additional 1.8 Mhz spectrum.
At a time when the new operators are struggling to get
new subscribers, additional cost on them would hit them hard.
"We need to seriously consider the adoption of an auction
process for allocation and pricing of spectrum beyond 6.2 Mhz
while ensuring that there is adequate competition in the
auction process," Sibal told reporters here.
New Delhi, Jan 29 (PTI) In a major shift in policy that
may make mobile telecom services costly, Indian Telecom
Minister Kapil Sibal Saturday said henceforth all operators
would have to pay market price for initial as well additional
spectrum.
Delinking spectrum from the licences in the aftermath of
the 2G scam that rocked that country, Sibal said, "In future,
the spectrum will not be bundled with licence. The licence to
be issued to telecom operators will be in the nature of
'Unified Licence' and the licence holder will be free to offer
any of the multifarious telecom services.
"In the event, the licence holder would like to offer
wireless services, it will have to obtain spectrum through a
market driven process," he told a press conference.
As of now the telecom operators were getting spectrum
bundled with the telecom licenses which had paved the way for
low tariff regime and intense price war among the service
providers.
But now, the new operators, if their licences are held
valid, would have to pay a market price for the additional 1.8
Mhz of 2G spectrum and this may make their operations
financially unviable.
For the old operators like Bharti, Vodafone and Idea, who
are holding spectrum beyond 6.2 Mhz, they would have to pay
market driven price for the extra airwaves.
These changes would be implemented with immediate
effect, Sibal said.
One of the new operators, when contacted, said that the
new regime has given a major advantage to the old operators by
allowing them to retain 6.2 Mhz of spectrum while the new
operators would be at loss as they have to pay market price
for the additional 1.8 Mhz spectrum.
At a time when the new operators are struggling to get
new subscribers, additional cost on them would hit them hard.
"We need to seriously consider the adoption of an auction
process for allocation and pricing of spectrum beyond 6.2 Mhz
while ensuring that there is adequate competition in the
auction process," Sibal told reporters here.
