Airtel, Telenor, Vodafone India CEOs share telecom spectrum auction concerns

Gopal Vittal, Jt. MD & CEO – India, Bharti Airtel, Marten Pieters, managing director & CEO, Vodafone India and Sigve Brekke, head of Telenor Asia region, have shared their official response to the telecom spectrum auction concluded today.

While CEO of Airtel India and Vodafone India shared their concerns about spectrum auction and availability of the radio airwave, Telenor head spoke about future opportunities.

Gopal Vittal, Jt. MD & CEO – India, Bharti Airtel

The auction has provided much needed long term certainty and clarity around spectrum and other regulatory policies. However, future auctions should ensure that more spectrum in the 900 MHz band is secured from other agencies and the operators who are grossly underutilizing this important spectrum band. The auction also highlights the urgent need for vacating E-GSM spectrum in the 800 MHz band, which is being used for older technologies or is lying unused with certain agencies.

Airtel added that in most circles the auction in 1800 MHz showed a balanced approach between the revenue for the exchequer and industry viability due to ample spectrum being put up for auctions. However, the auction in 900 MHz band resulted in artificial and unrealistic prices on account of shortage of spectrum and the unenviable position of the incumbents who were forced to bid for this spectrum to protect the interest of their customers and the huge investments made by them.

Marten Pieters, managing director & CEO, Vodafone India

We are pleased to have secured our business for the next 20 years in three of our most important circles by buying enough spectrum to continue our successful journey. We have also opened the door to the next generation of mobile technology—4G—by acquiring 1800 spectrum in the places where we expect this market to take off first. Vodafone Mumbai is the only operator in India to have data capabilities on all the commercial spectrum bands: 3G on 900MHz and 2100MHz and 4G on 1800MHz.

The auction has raised over INR 61,000 crore for the government, but much of this will end up as debt on the balance sheets of the mobile operators. Such high industry indebtedness will hurt operators’ ability to invest in the roll out of new technologies and invariably result in higher prices and reduced service levels for consumers.

Vodafone MD Marten Pieters  during vodafone india hear FY14 Financial resulys for six months press conference at lalit Hotel  in New Delhi 12/11/2013 Photo By Qamar Sibtain

Spectrum remains unsold in only a handful of circles. However, the industry is still spectrum starved compared with other countries and the appetite for spectrum in India remains high. To meet the ambitious broadband objectives more spectrum should be made available in all bands on reasonable terms.

Sigve Brekke, head of Telenor Asia region

Telenor Group has always stated that we have a long term perspective on our investment in India. I am pleased that Uninor through this auction has strengthened its competitive advantage as a cost efficient operator. Uninor is now well positioned to continue its growth path through offering affordable mobile services to even more customers in India, both in existing circles and in Assam where we believe the Uninor model fits very well.

Morten Karlsen Sorby, nominated CEO of Uninor

It is critical that mobile tariffs remain affordable for the mass market after the auctions. With its auction strategy, Uninor has ensured that it can continue to offer the most affordable tariffs in each of its seven circles while maintaining a healthy business case. We have now secured a spectrum platform for continuing growth and profitability in each of our circles.

editor@telecomlead.com

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