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Call rates to go up by 100%, warn operators
Binny Sharma
New Delhi
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Cellular operators at a press conference on TRAI Spectrum Auction Recommendations in New Delhi
Photo: Naval Hans |
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CELLULAR Operators Association of India (COAI) is leaving no stone unturned to continue its protest against the recommendations made by Telecom Operators Association of India (TRAI), threatening that mobile tariffs can go up by 100 percent if the government accepts it.
Since last few days, all the major telecom companies have stepped the ante against TRAI’s Spectrum auction proposals. Even on Wednesday, top honchos of major telecom companies spent their day meeting various ministers, trying to convince them of the drawbacks related to TRAI’s recommendations.
Sanjay Kapoor, CEO of Bharti Airtel said that the affordability of telecom services will be largely impacted if TRAI’s proposed base price for 2G licences are accepted by the government.
“It will impact the perception of India as the fastest growing telecom market. Tele-density will be negatively impacted and it will have an adverse effect on India’s competitiveness,” he said.
Kapoor added that if the government accepts the TRAI’s proposals, it would prove to be a death knell for the telecom industry. He termed TRAI’s recommendation of charging a base price of Rs 3,622 crore for pan-India spectrum as flawed and retrograde.
COAI reacted to TRAI’s claim that telecom companies haven’t done enough to increase penetration in rural areas. Kapoor said, “We have gone to deepest parts of the country and have created a very healthy eco-system in various villages.”
Rajiv Bawa, Head, Telenor India said, “We compete in the market and fight all the time, and we’ll continue to have differences, but today we are here because we have a common cause, and there are things that are not good for a new player, and not good for an incumbent.”
“The premise is the Supreme Court order, which say that licences are quashed, and fresh licences need to be given through an auction. At the most, one new player will be able to come in at these prices. This will impact tariffs and the rollout obligations as well,” he added.
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"Tele-density will be negatively impacted and it will have an adverse effect on India’s competitiveness"
Sanjay Kapoor,
CEO, Bharti Airtel |
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Sharing similar views, Himanshu Kanpania, coo Idea Cellular said that in 2008, an administrative allocation of spectrum was made and it has come back to the government.
“Spectrum was allocated at Rs 1658 crore. The SCorder only says that have an auction. We can index Rs 1658 crore to 2012. Remember that this is a reserve price. There is no connect between reserve price and final price,” he said.
Earlier another telecom association GSMA too said that TRAI’s recommendations will escalate mobile spectrum cost and affect mobile broadband growth in Indian telecom market.
At present, broadband customer base stands at around 1.4 crore in India. TRAI suggested that the 700 MHz spectrum should be auctioned in 2014.
“This will affect the mobile broadband expansion plans of major operators such as Bharti Airtel, Vodafone, Tata Teleservices, Idea Cellular, among others,” said GSMA.
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