Trai is planning to map the quality of service of all telcos.
Foreign operators may fail to provide quality 3G services, unlike their Indian counterparts, as the Department of Telecommunications is offering spectrum in tranches of 5 MHz, which is insufficient for starting operations.
The company will wait for sizeable user base for better valuation.
In a relief to the incumbent telecom operators, who have more than 6.2 MHz spectrum, the department of telecom (DoT) on Friday clarified the retrospective fee on spectrum beyond 6.2 MHz would be calculated based on the 2001 auction price, indexed to the prime lending rate (PLR) of a state-owned bank.
The government has in-principle approved refarming (shifting) of spectrum and was waiting for Telecom Regulatory Authority of India's recommendations in this regard to start the process and formalise it as part of the new telecom policy.
The Telecom Regulatory Authority of India (Trai) on Monday proposed a high reserve price for telecom spectrum to be auctioned, at nearly Rs 3,622 crore (Rs 36.22 billion) per MHz in the 1,800-MHz band (for GSM services).
The chief of the British telco's Indian subsidiary, which is the second largest cellular operator in India, also said the recent decisions by telecom authorities have disappointed the sector.
In a relief to telecom operators, the Empowered Group of Ministers (EGoM) is believed to have suggested setting a 20 per cent lower base or bid start price at Rs 14,111-15,111 crore for the proposed spectrum auction.
Meanwhile, on the contentious issue of roaming pact among leading service providers to offer 3G mobile services, the company seems to have hardened its stand by stating that they are ready to return the 3G spectrum to the Government and will take back the money if the roaming pact is not allowed.
Trai has recommended cancellation of 74 licences, including Unitech Wireless's 8, Aircel/Dishnet's 7, Etisalat DB's 2, Videocon's 4, Spice's 3, Vodafone's 1, among others.
Unlike Reliance Jio's focus on 4G, it plans to segment the data market based on device prices and spectrum.
Identifies spectrum for 4G services; eight companies to be accommodated; discussion paper to be out by August and recommendations by October.
The Delhi circle licence will be available in the efficient 900 MHz spectrum, which is why Videocon is interested.
'Spectrum payment to push up telcos' debt to Rs 3.5 lakh cr'
In a development that has huge financial implications for existing as well as new operators, the Telecom Regulatory Authority of India has recommended fixing the price for 6.2 Mhz of pan-India start-up 2G spectrum at Rs 10,972.45 crore (Rs 109.724 billion), more than six times the present cost of Rs 1,658 crore (Rs 16.58 billion).
The government may earn about Rs 50,000 crore (Rs 500 billion) from the new telecom spectrum policy, which seeks to delink licences from spectrum, if it decides to fix the price based on the figure discovered through last year's 3G auction.
Telecom Regulatory Authority of India, on October 15, gave its recommendation on spectrum auction for premium 900 Mhz band and 1800 Mhz band that are presently being used for 2G GSM mobile services by Airtel, Vodafone, Idea Cellular and Reliance Communications.
India's telecom sector has been through dizzying peaks, troughs, policy U-turns, court battles, brutal competition, and daily controversies. India could go back to a private sector duopoly with just Reliance Jio and Bharti Airtel surviving the mayhem. The third player, Vodafone Idea, could be history.
Officials of Reliance Jio Infocomm claimed to have achieved broadband speeds on their networks that are 10-12 times faster than 3G services.
Leading mobile phone operators came down hard on the telecom regulator on a day when most saw their stocks on a crash course.
Operators Bharat Sanchar Nigam Ltd, Bharti Airtel, Vodafone-Essar, Aircel, Mahanagar Telephone Nigam Ltd and Idea Cellular might have to fork out over Rs 11,200 crore for having spectrum beyond 6.2 MHz, if the government accepts the Telecom Regulatory Authority of India (Trai) recommendations.
Bharti Airtel on slammed telecom regulator TRAI's recommendations on spectrum fee, saying they are retrograde and arbitrary.
Spectrum auction proceeds to help plug fiscal deficit: Moody's.
The company has purchased the rights to use the 1,800 MHz spectrum in 6 circles.
The Department of Telecom has postponed the next spectrum auction to February 3 from January 23 amid pending issues, including spectrum usage charges, and a demand from operators seeking more time.
The Department of Telecommunications (DoT) seems to be in a state of confusion on deciding the number of slots of 3G spectrum to be auctioned. It is now in favour of auctioning only two blocks and immediately assigning the spectrum to the successful winners.
India's second-largest telecom firm Bharti Airtel on Tuesday reported a net profit of Rs 1,134 crore for the September 2021 quarter, and said it is witnessing strong business momentum with growth in 4G customers and increase in mobile ARPU. This is against a loss (attributable to owners of the parent) of 763.2 crore during the year-ago quarter, the company said in a statement. Its consolidated revenues for the second quarter of FY21 stood at Rs 28,326.4 crore, up 18.8 per cent year-on-year (on a comparable basis) and 13 per cent y-o-y on a reported basis, it added.
The minister had last month said that the guidelines will be out by October 15.
Releasing its recommendations for BWA spectrum allocation on Friday, Trai has suggested that the auction should be done in blocks of 5 MHz each and any bidder can bid for one or two or three blocks. A company can bid up to a maximum to 15 Mhz in block of 5 Mhz. The bidder has to specify before the auction, the number of blocks he desires to bid for.
The regulator has suggested that all spectrum will be auctioned as opposed to the current policy of bundling it with a 2G licence. A beginning has been made with the auctioning of spectrum for 3G services, which is due later this year. Trai has also suggested that licences for any telecom service should be auctioned as opposed to the current policy, where it is given on a first-come-first-served basis. The new policy is expected to be ready by the end of December this year.
Airtel has pitched for a hike in mobile and data tariffs.
The Department of Telecommunications is examining a proposal to auction around nine licences for 3G -- or third generation -- services among incumbents and new players in place of an earlier proposal to allow five players in this space.
He said that the telecom ministry is in discussions with finance ministry and GSM operators to work out new charges for additional spectrum beyond 6.2 MHz. The minister also said his ministry is also talking to finance ministry on the issue of relaxing borrowing norms for aspiring 3G spectrum bidders.
DoT identifies more spectrum, to expand auctions from earlier estimate of five in each service area.
Commenting on the development, Rajiv Mehrotra, Chairman of Shyam Group, told PTI: "We are delighted that the government has opened up the way for new telecom players to operate telecom services as soon as possible and this is a major step towards offering cost-effective mobile services." Russian conglomerate has already announced up to $5 billion (Rs 20,000 crore) investment in the Indian telecom sector.
The Department of Telecommunications has decided to hike four-fold the reserve price for broadband wireless access services in the country.
Bharti may look at gaining market share pre-merger and benefit from a lower capex intensity
The Vigilance Commission has asked DoT to justify its decisions regarding spectrum allocation to GSM operators.
The government struck a cordial note with the GSM mobile lobby by agreeing on the Telecom Regulatory Authority of India's (Trai's) norms for spectrum allocation, a move described by rival CDMA player Reliance Communications (RCom) as "succumbing to pressure".
The Department of Telecommunications (DoT) has mooted a proposal under which operators will pay a one-time fee for all spectrum allotments beyond 6.2 MHz.
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