KumaarShah 143 Report post Posted January 29, 2011 (edited) NEW DELHI: In a major shift in policy that may make mobile telecom services costly, Telecom Minister Kapil Sibal on 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, 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. Read more: Mobile tariff may go up; spectrum delinked from licence - The Times of India Edited January 29, 2011 by KumaarShah Share this post Link to post Share on other sites
raccoon 53 Report post Posted January 29, 2011 This is horrible. Is this what Mr. Sibal has in store for us...?? Share this post Link to post Share on other sites
KanagaDeepan 1,084 Report post Posted January 29, 2011 I expected such moves from the Dev!ls adv0cate, much much earlier... Share this post Link to post Share on other sites
ashoksoft 83 Report post Posted January 29, 2011 Absolutely Ridiculous!!! Share this post Link to post Share on other sites
Honest 836 Report post Posted January 29, 2011 Hmmmm.....we are trying to get lower tariffs from operators but....yahan toh ulta scene chal raha hai. Share this post Link to post Share on other sites
kshah 452 Report post Posted January 30, 2011 Raja ne paise bana liye, ab sibbal ko bhi banane hai na. Telco will go to court and bring order of status quo. Jab woh log sibbal ke paas jayenge to saste mein spectrum ke liye paise denge. Nahin to woh kahega bring court orderd to get spectrum. Share this post Link to post Share on other sites
Karthik R 246 Report post Posted January 30, 2011 Now the telecom biggies will have to shell out bucks for the excess spectrum they are holding, which is more than 10 Mhz in some circle! They at the same time will have a reason for upward revision of tariff. Share this post Link to post Share on other sites
ravi_patent 28 Report post Posted January 30, 2011 (edited) fake activations by gsm operators will comedown.however unequal spectrum allotment for new operators seems biased. Edited January 30, 2011 by ravi_patent Share this post Link to post Share on other sites
KanagaDeepan 1,084 Report post Posted January 30, 2011 (edited) fake activations by gsm operators will comedown.however 6.2mhz and 4.8 mhz for new operators seems biased. VERY TRUE indeed... New operators should also be charged more only after 6.2MHz... But I think Uncle has intently done this to get paise from both new and old... Also asking this much amount from operators contradicts the UNCLE's THEORY that "CAG valuations is WRONG", as he himself is asking (atleast for the extra spectrum) almost the CAG's recommended price now... Let's wait and watch now.... Edited January 30, 2011 by KanagaDeepan Share this post Link to post Share on other sites
petar 15 Report post Posted January 30, 2011 This will be going on till congress govt is there.... they are doing this in every sector possible.... Share this post Link to post Share on other sites
raccoon 53 Report post Posted January 30, 2011 What happened to Mr. Sibals own assertion that the guiding principle in a welfare state is not maximization of revenue?? We already have raging inflation in food sector, percolating to other sectors, and now they want it to hit the telecom sector too. This govt. is... Share this post Link to post Share on other sites
kesav 127 Report post Posted January 30, 2011 New spectrum policy favours old operators: TTSL Tata Teleservices on Saturday said that all operators, including new and old ones, should be given 6.2 Mhz spectrum, and over and above that they should be charged as per the market price. "In line with what we have been stating during the consultation process held by Trai in the first half of 2010, we would re-emphasize that all operators be given 6.2 Mhz spectrum in a manner that those waiting for start-up spectrum are first allocated the same," TTSL said in a statement. TTSL's statement comes in the wake of telecom minister Kapil Sibal's decision to delink spectrum from the licence and reduce the contract limit of spectrum to 4.4 Mhz for new operators. For the old operators the limit has been retained at 6.2 Mhz. Sibal said that henceforth all spectrum, initial as well as additional, would be given at market driven price. "...Those who have excess spectrum are charged for the same, preferably retrospectively, to bring all operators to a level-playing-field," TTSL said. It added that consequent to bringing the level-playing-field, the spectrum beyond 6.2 and up to the limits specified by Trai in May 2010 could be charged by DoT in line with Trai's recommendations. Besides Tatas, one more operator, who did not wish to be identified, also opposed the move to limit the contracted spectrum to 4.4 Mhz saying the new regime would give huge advantage to old operators, who have millions of subscribers in their kitty. This (new regime) would make new operators' operations financially unviable. Most of the other new operators declined to comment on the new policy. "Having waited for three years since others received their spectrum, it is urged that the government quickly allocates the spectrum to those who have been waiting since long," TTSL asserted. source :: http://www.hindustantimes.com/New-spectrum-policy-favours-old-operators-TTSL/Article1-656174.aspx Share this post Link to post Share on other sites
rajanmehta 4,056 Report post Posted January 30, 2011 The Govt. is so besotted with Costly Auctions resulting in Pains For All of You "aam aadmi" But Fret Not Friends...Soon it is coming up with Zero Cost Auctions Auction For State of Jammu&Kashmir..Reserve Price.. Rs 0..Only Bidder...Pakistan..Auction Winner...Make a Guess Auction For The Chair of Prime Minister...Reserve Price.. Rs 0...Only Bidder...You Know That...Winner...Again You Know That Share this post Link to post Share on other sites
starnet 7 Report post Posted January 30, 2011 Telecom scam 2.0 is happening right now. There is a good reason why a person on the level of PM Manmohan Singh has been saying in media that it is not possible to prosecute those who are holding money in illegal foreign bank accounts. Everyone in this government is a thug. Share this post Link to post Share on other sites
Honest 836 Report post Posted January 30, 2011 Portability will keep mobile tariffs low: Sibal The Times Of India l 31st January l New Delhi The government expects market competition and number portability to ensure reasonable tariff for subscribers despite the Centre's new policy of charging operators for additional spectrum and ushering an auction-based pricing. With some operators speaking of telecom services costing more in view of added costs the new policy entails, the government did not rule out a more unfettered play of market forces but felt increase in subscriber costs need not be the obvious impact of new charges being levied on air waves that were previously not charged. "There can be some fluctuations in rates but I think number portability and more open competition will mean rates remain reasonable. The customer will get low tariffs, the telecom sector can make reasonable profit and the government will get its revenues too," telecom minister Kapil Sibal said. The minister said not adopting the auction route had drawn flak and now that the government was saying all spectrum would be charged and new allocations would be auctioned, the question of cost was raised. "You can't have it both ways," he said, pointing out that the policy aimed to make the processes transparent. The government believes charging for additional spectrum allotted to telecom service providers is essential to restore public faith in accountability and regulation of the sector. In the past no operator, either new or an early mover, paid for additional spectrum and this anomaly needed to be addressed. On the demand that new players be allowed 6.2 Mhz as start up spectrum instead of 4.4 Mhz, the view in government is that the terms of trade will even out any perceived advantage to older service providers. Some licences held by those claiming "first mover" benefits will run out in a couple of years. These firms will have pay for licences and spectrum afresh while new licences have more years to run while also paying for air waves beyond 6.2 Mhz. It is also felt that not charging for 1.8 Mhz was an important reason in estimates of loss of revenue in 2G spectrum allocations reaching an astronomical Rs 1.76 lakh crore. This could not be overlooked when the Centre revised policy and looked to shake off the baleful shadow of DMK leader A Raja's tenure. The national auditor's report on losses has played Prime Minister's Office in the line of fire as well for lack of oversight. Share this post Link to post Share on other sites
ravi_patent 28 Report post Posted January 31, 2011 sibal should note that porting govts by way of elections every 5 years is not resulting in any good. allow voip legally for real tariff benefit to customers.. otherwise mnp will be of no use Share this post Link to post Share on other sites
vvinayakpai 26 Report post Posted January 31, 2011 (edited) A positive way of looking at it is that delinking of spectrum from license would mean that Infotel Broadband (The Mukesh Ambani Company going to offer 4G LTE services pan India) can easily offer voice calls on their 4G network by paying an additional 1651 crores for pan India Unified Access Service License. I hope my understanding of the same is right!!!!!! Edited January 31, 2011 by vvinayakpai 1 Share this post Link to post Share on other sites
me_saket 73 Report post Posted January 31, 2011 yes very true, and this will also benfit other 4G player to offer VOIP Share this post Link to post Share on other sites
