Dinesh jain
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Industry body COAI has said mobile tariffs may
go up soon as telecom operators are expected
to pass on to customers the burden of
spectrum cost they will incur in the upcoming
auction.
The auction of airwaves is likely to be
conducted in February next year.
"Definitely there will be an upward pressure on
tariffs as the debt burden of telecom players
will increase post auctions, they have to pass
on the cost to customers," COAI Director
General Rajan S Mathews told PTI. He said
operators have to pay around Rs 40,000 crore
for the spectrum even if the airwaves would be
sold at reserve price in 900MHz and 1800 MHz
bands.
"From where the money will come from?
Banks are also unwilling to lend to telecom
operators due to high debt burden. Also the
telcos have to spend on network infrastructure.
So, after paying such huge amount for
spectrum only, they have to pass the burden
to customers," Mathews said.
Telecom sector regulator TRAI had suggested
a 10 per cent higher base price for the next
round of spectrum auction in the 1800 Mhz
band.
The Telecom Regulatory Authority of India
(TRAI) had recommended a price of Rs 2,138
crore per Mhz for the 1800 Mhz band and Rs
3,004 crore per Mhz for the premium 900 Mhz
band.
The spectrum auction will be conducted for
radiowaves in 900 Mhz held by existing
telecom operators Airtel, Vodafone, Idea
Cellular and Reliance Communications through
their licences that are expiring in 2015-16.
In the 900 Mhz band, about 184 Mhz of
spectrum is likely to be auctioned. In 1800
Mhz, government has proposed to auction 104
Mhz of spectrum which included spectrum
held by licences that are expiring in 2015-16
and unsold airwaves in February auction.
Telecom operators have been cutting back on
freebies and discounted minutes to maintain
profitability. Analysts say this trend may
continue as they have to pay for the fresh
spectrum purchases.
After the last auction held in February this
year, Vodafone India CEO Marten Pieters had
said the telecom industry in India has reached
a point where the tariffs need to increase
every year to sustain itself.
The February 2014 auctions fetched about Rs
62,162 crore.
Telcos may raise tarrifs to pay for spectrum cost
go up soon as telecom operators are expected
to pass on to customers the burden of
spectrum cost they will incur in the upcoming
auction.
The auction of airwaves is likely to be
conducted in February next year.
"Definitely there will be an upward pressure on
tariffs as the debt burden of telecom players
will increase post auctions, they have to pass
on the cost to customers," COAI Director
General Rajan S Mathews told PTI. He said
operators have to pay around Rs 40,000 crore
for the spectrum even if the airwaves would be
sold at reserve price in 900MHz and 1800 MHz
bands.
"From where the money will come from?
Banks are also unwilling to lend to telecom
operators due to high debt burden. Also the
telcos have to spend on network infrastructure.
So, after paying such huge amount for
spectrum only, they have to pass the burden
to customers," Mathews said.
Telecom sector regulator TRAI had suggested
a 10 per cent higher base price for the next
round of spectrum auction in the 1800 Mhz
band.
The Telecom Regulatory Authority of India
(TRAI) had recommended a price of Rs 2,138
crore per Mhz for the 1800 Mhz band and Rs
3,004 crore per Mhz for the premium 900 Mhz
band.
The spectrum auction will be conducted for
radiowaves in 900 Mhz held by existing
telecom operators Airtel, Vodafone, Idea
Cellular and Reliance Communications through
their licences that are expiring in 2015-16.
In the 900 Mhz band, about 184 Mhz of
spectrum is likely to be auctioned. In 1800
Mhz, government has proposed to auction 104
Mhz of spectrum which included spectrum
held by licences that are expiring in 2015-16
and unsold airwaves in February auction.
Telecom operators have been cutting back on
freebies and discounted minutes to maintain
profitability. Analysts say this trend may
continue as they have to pay for the fresh
spectrum purchases.
After the last auction held in February this
year, Vodafone India CEO Marten Pieters had
said the telecom industry in India has reached
a point where the tariffs need to increase
every year to sustain itself.
The February 2014 auctions fetched about Rs
62,162 crore.
Telcos may raise tarrifs to pay for spectrum cost
