Telecom Lead India:
The stage is set for the Government to milk the already bleeding Indian mobile industry.
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.
TRAI data suggests that. Mobile
operators’ access revenue grew by 2 percent to Rs 38457.03 crore in March
2012 from Rs 37701.91 crore in December 2011.
Bharti grew its revenues from Rs 10487.65 crore to Rs
10565.79 crore, growing at 0.75 percent.
The second largest operator Vodafone increased its revenue
from Rs 7887.85 crore to Rs 8204.11 crore, registering 4.01 percent growth.
BSNL, MTNL, Reliance Communications and Loop posted negative
growth.
3G investments have already made them to run non-viable
business. 4G investments are not coming in through BWA auction happened in
2010.
Bids by telecom companies for second-generation or 2G
licenses will have to start at Rs 14,000 crore each, the cabinet decided today.
Sistema Shyam and Uninor will have tough times ahead.
Consolidation will be around the corner in the wake of the
high spectrum costs and dwindling revenue streams.
Several operators such as Airtel, Reliance Industries-owned
Infotel, Aircel, etc. are considering bidding for 2G spectrum. High cost will
prompt them to go slow in the bidding.
The number of telephone subscribers in India increased from
926.53 million at the end of December 2011 to 951.34 million at the end of
March 2012, registering 2.68 percent growth over the previous quarter as
against 2.16 percent during the December 2011.
Government officials said the Cabinet approved the reserve
price of Rs 14,000 crore for 5 MHz pan India in 1800 MHz Band.
The Cabinet also approved the recommendation of EGoM for
reserve price for 800 MHz band at 1.3 times that of 1800 MHz band. Existing
slab rate system for Spectrum Usage Charges (SUC), as recommended by EGoM, as
the preferred option has also been approved by the Cabinet.
pricing of spectrum pending ascertainment of the developments/ outcome of the
ongoing proceedings before the Supreme Court in the Presidential Reference and
that all questions relating to the pricing of Spectrum currently held by
Telecom Service Providers and related issues including pricing of contracted
spectrum, excess spectrum, prospective/ retrospective pricing be considered
thereafter.
process, which is being implemented expeditiously by the Department of Telecommunications.
editor@telecomlead.com