 |
 |
 |
| |
|
|
High Reserve Price Continues To Overshadow Industry: COAI
 |
|
|
|
|
| |
|
Monday, July 23, 2012:
As per the media reports, it is understood that the EGoM has made a proposal to the Cabinet to consider Reserve Price in the range of INR 14,000 - 15,000 crores and Spectrum Usage Charges either 5% or from 3%-6%.
|
|
It is saddening to know that EGoM has not given due consideration to the fundamental issue of unsustainable high reserve prices which will significantly increase costs, thereby invariably increasing the tariffs. This is a fact whereby industry has made representations and submitted the cost calculations which have even been seconded by independent analysts and the investor community.
Therefore, by changing the payment model to high upfront charges coupled with even higher Spectrum Usage Charges only aggravates the problem. It is pertinent to note that internationally where the spectrum has been allocated through the auction process, SUC (Spectrum Usage Charges) is fixed at a nominal rate not exceeding 1%. It is imposed only to recover the administrative costs associated with managing spectrum. As expressed by COAI on various occasions, high payment for spectrum one way or the other will adversely impact affordability as the tariffs are bound to go up. The situation is going to adversely impact rural penetration as rural rollout will become increasingly unviable and unsustainable.
The Telecom Industry has been suffering from a serious non level playing field created between GSM and CDMA/dual technology operators due to sustained favoritism towards them such as allocation of dual spectrum, spectrum usage charge levied on disaggregated AGR, failure to meet rollout obligations, etc. The discrimination between GSM and CDMA is being further widened by keeping the auction reserve price for 800 MHz at 1.3 times of 1800 MHz on the rationale that less than 5MHz is being put up for auction. A similar option is not being extended to GSM operators to retain their 900 MHz spectrum at a price of 1.3 times of 1800 MHz, in the event that less than 5MHz is obtained at the time of the licence extension.
Although the Industry supports deferred payments for spectrum, the requirement for 25% of upfront payment for CDMA and 35% of upfront payment for GSM is yet another blatant example of discrimination, defeating the objective of creating a level playing field among the operators.
The proposal for a one time spectrum fee beyond zero or 4.4(GSM)/2.5(CDMA) or 6.2(GSM)/5(CDMA) is laden with legal infirmities besides being discriminatory against pure-GSM players as also contradictory to stated policy objectives of the Government. COAI believes that many of these recommendations will perpetuate the inequities between pure-GSM and dual-technology players thereby eroding the playing field even further. Additionally;
· Any retrospective fee charged from the operators will be detrimental for their growth as it will further strain their dire financial position and there is no way for operators to recover a levy for the past periods from consumers.
· Any prospective fee will only serve to increase tariffs and thus, adversely impact the subscribers.
COAI therefore again urges that the level playing field between the various players be maintained, the spectrum usage charges should be kept at a nominal rate and the reserve price be set at a reasonable level such as only to deter non serious bidders and allow the market to determine the final value of spectrum through a transparent auction process.
|
|
| |
|
|
|
|
| |
|
|
| |
|
| |
| |
| |
|
|
 |
 |
 |
 |
|
|
|
|
|
|
|
|
|
|
|
SUBSCRIBE TO EFYTIMES
Receive the latest reviews, how-tos, news & more.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
 |
|
|
|
Create QR-Codes For Free |
| TEC-IT releases the freeware QR-Code Studio to provide a quick and convenient way of QR code creation for every application scenario.... |
|
 |
|
|
|
|
|
|
|
|
Hands On: Videocon A30 Smartphone |
| Videocon, the consumer electronics company which is known for its refrigerators, washing machine and air-conditioner has unveiled its Android-based sm... |
|
|
|
| |
|
 |
| |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Face To Face With Richard Stallman |
| The father of the free software movement, Richard M. Stallman talks on topics including why ‘Free Software’ matters so much, the entire confusion crea... |
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
