Telecom Lead India: The Cellular Operators Association of
India (COAI) has warned that the re-auction of 2G spectrum at Rs 14,000 crore
per 5 MHz will impact tariffs to the tune of 37-49 paise per minute.
The GSM operators’ body also said that the high base
price will increase the total industry debt to anywhere between Rs3, 70,000
crore to Rs5, 40,000 crore as per the two separate scenarios provided by TRAI.
The industry body said that the cabinet’s decision on
spectrum base price is against consumer interest. Also, the higher base price
would have severe repercussions on the future viability of the industry.
The latest spectrum base price India is way above the
international reserve price per MHz per population.
On purchasing power parity basis, the reserve price per
MHz per population in India of Rs19.68 is high as compared with Rs1.06 that
Ofcom, the telecom regulator of the United Kingdom, announced for auction of
1800 MHz band, COAI explained.
COAI said that comparatively the Indian operator will
have to shell out 1700 per cent more than the UK operator for the same amount
of spectrum in the 1800 MHz band and 700 per cent more in the 800 MHz band.
Furthermore, the industry body said that continuing the
slab-wise system for Spectrum Usage Charge (SUC) is unfair and will lead to
continuation of the non-level playing field within the industry.
COAI said that in international sphere, spectrum has been
allocated through the auction process, SUC is fixed at a nominal rate not
exceeding 1 per cent to recover the administrative costs associated with
managing spectrum.
Spectrum price: Indian telecom industry may plunge into darkness
The decision of the Union Cabinet to fix Rs 14,000 crore
as the reserve price for 2G spectrum licenses suggests that the Indian mobile
services will further plunge into darkness.
editor@telecomlead.com
