GMDC: Growth Opportunity

GMDC is growing on strength of sound strategy, management and financials, and this makes it a...

Premium Content
Monthly Digital Access


Already A Subscriber?
Yearly Digital+Print Access


Moneylife Magazine Subscriber or MSSN member?

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Telecom Commission for refarming entire spectrum in 900 Mhz band

Existing operators will be allowed to bid in the auction of 900 MHz band and if they fail to win the spectrum, they will be given 18 months to move to 1800 MHz, which may put an additional burden of over Rs66,000 crore

New Delhi: The Telecom Commission has recommended that existing mobile operators will have to fully give up airwaves in the superior 900 MHz band at the time of licence renewal in 2014 -- a move that GSM players said would cost them over Rs66,000 crore in replacing infrastructure, reports PTI.
"The entire spectrum in 900 MHz will be refarmed," Telecom Secretary R Chandrashekhar said after meeting of the panel.
Chandrashekhar, who also heads the Commission, said three different options were put before Telecom Commission including refarming (or redistribution of airwaves held by existing players) of all airwaves held by incumbents, or allowing the operators to retain either 2.5 Mhz or 5 Mhz of airwaves frequencies in 900 Mhz band.
"The commission decided that entire spectrum will be refarmed which means above 0 (Mhz)," Chandrashekhar said.
The recommendations of the commission -- the highest decision making body of Department of Telecom (DoT) -- will now be put before the Empowered Group of Ministers (EGoM) headed by Finance Minister P Chidambaram for a final decision when it is likely to meet on Thursday.
Terming the decision as "death knell" for the GSM players, COAI said: "Operators with 900MHz band will need to replace 286,590 base stations and install an additional 171,954 base stations to provide equivalent coverage on 1800MHz." 
Such a replacement of base stations and deployment of additional sites will result in an incremental capex of Rs54,739 crore, and incremental annual opex of Rs11,762 crore, COAI said citing an independent study by Analysys Mason.
However, dual-technology operators' association AUSPI welcomed the decision saying it will create a level playing field among operators.
"The decision of TC is in accordance with the NTP 2012 which delinks licenses from spectrum and hence, at the time of renewal the operators will have to get it by competitive and transparent methods," AUSPI said in a statement.
Chandrashekhar said the existing operators will be allowed to bid in the auction of 900 MHz band, which is likely to take place in the first half of 2013. If they are successful, they can retain the spectrum, he added.
However, if the incumbents fail to win the spectrum, they will be given 18 months to move to 1800 MHz for which an equivalent amount of spectrum will be made available for them in the new band.
"...if the same operator succeeds, he will retain it, if a new person succeeds, than the existing operator has 18 months to make his alternative plans and the new operator will have 18 months to put his infrastructure in place before he gets the spectrum," Chandrashekhar said.
The licences of existing players for metro circles are coming up for renewal in November 2014 and for other circles in 2015 and 2016.
The government has in-principle approved the concept of spectrum refarming under which old operators including Bharti Airtel and Vodafone have to surrender spectrum allocated in 900 Mhz band (being used for 2G services which gives wider coverage) on expiry of their licences.
The base price for 900 Mhz band spectrum is proposed to be charged at double the price of 1800 Mhz spectrum band.
The government had allocated spectrum in 900 Mhz band to companies from 2001 for Rs1,658 crore for pan-India services.
Telecom companies have been against refarming, saying it may result in call rates going up by as much as 64 paise a minute.
The Telecom Regulatory Authority of India (TRAI) has proposed allowing players, including existing operators, to bid for these spectrum at new prices.
The Cellular Operators Association of India (COAI) said, "operators will also have to write-off their existing 900MHz assets at an estimated cost of Rs22,310 crore. At an industry level, an additional capex of about Rs 26,653 crore will be required to deploy new towers to support the incremental base stations." 
But Association of Unified Telecom Service Providers of India (AUSPI) said: "The incumbents have reaped significantly high benefits by exclusive use of 900 MHz spectrum for a decade and have gained market leadership and have achieved profitability due to very high quality of service and significantly lower cost associated with 900 MHz". 
Following the decision, Bharti Airtel was trading 1% down at Rs267 and state-run MTNL was also marginally down at Rs28, while Reliance Communications at Rs61, Idea Cellular at Rs81.6 and Tata Teleservices (Maharashtra) at Rs11.7 were marginally up in the early afternoon trade on the BSE. The benchmark Sensex was also marginally up at 18.718.


SC dismisses plea against Rahul Gandhi, slaps Rs5 lakh fine on ex-MLA

The apex court further said the petition filed against Rahul Gandhi was "misconceived" and that Samrite, the former MLA of SP abused the process of law on the basis of incorrect statement

New Delhi: The Supreme Court on Thursday slapped a fine of Rs5 lakh on former member of legislative assembly (MLA) of Samajwadi Party (SP) while dismissing his petition against Rahul Gandhi as without substance in which he had alleged that the Congress leader had confined a girl in Uttar Pradesh, reports PTI.
"The allegation is without substance and without an iota of evidence," a bench of justices BS Chauhan and Swatanter Kumar said.
"The reputation of respondent no 6 (Rahul Gandhi) has been damaged by the undesirable act of the petitioner (ex-Samajwadi Party MLA Kishore Samrite)," the bench said.
The apex court further said the petition filed against Gandhi was "misconceived" and that Samrite abused the process of law on the basis of incorrect statement.
The bench passed the order on an appeal filed by Samrite challenging an order of the Allahabad High Court which had dismissed his plea against Gandhi and imposed a cost of Rs50 lakh on him for filing a frivolous petition. The high court had also directed a probe by Central Bureau of Investigation (CBI) against the ex-SP MLA from Madhya Pradesh.
Samrite had then approached the apex court against the high court's order.
Rejecting his plea, the Supreme Court said, "the petition filed by him was not bonafide" and there was no case of illegal confinement as the girl, who was allegedly kidnapped, had made no complaint.
The bench, however, said that the cost imposed by the high court was exorbitant and reduced it.
It said that the CBI will continue with its probe against Samrite and other persons who are involved in filing of the frivolous petition and asked it to submit a report within six months.



Shadi Katyal

4 years ago

It is unfortunate that such cases for character assassination are filed and even in some sectors police and courts are being accused of playing politics.Is this due to xenophobia??? False
stories about his family has been distributed without any evidence.

We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)