 "Idea buys Videocon's spectrum for Rs 3,310 cr")
Bharti Airtel, Idea Cellular and Mukesh Ambani's Reliance Jio have opposed the auction of the new band, 700 MHz, till a device ecosystem is in place.
"Any immediate auction of the spectrum in 700 MHz band will lead to under-utilisation of the spectrum for several years," Bharti Airtel said in its comments to the Telecom Regulatory Authority of India (Trai) on pricing for spectrum in various bands for the next round of auction. Therefore, it should be auctioned "only after development of a strong device ecosystem", it added.
Echoing similar views, Reliance Jio said: "A recommended approach would be to do an ecosystem evaluation in two years' time and plan the auctions accordingly."
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According to a Trai paper, the cost of delivering mobile services in the 700 MHz band is 70 per cent cheaper than 2,100 MHz band. This will be the first time the government will be auctioning 700 MHz, which is considered good for offering broadband services.
Vodafone said while the ecosystem in this band was developing, "necessary caution may be exercised in respect of the terms of auction, including valuation, reserve price, rollout obligations. RCom suggested the 700 MHz price be calculated by indexing the last auction determined price of 800 MHz and then levying a 25 per cent premium over and above the price arrived at after indexation.
However, Telenor India and Tata Teleservices have favoured the auction of spectrum in the 700 MHz band.
"The device ecosystem for this band is developing at a good pace and 214 devices are already available in this band globally. Assuming that the auctions are concluded in the first quarter or the second quarter of 2016 and the allocations of spectrum happen by the third or fourth quarter of 2016, telecom service providers in India will be ready with their 700 MHz networks by mid-2017 and there will be big momentum in the ecosystem by that time," Telenor said.
On the issue of spectrum holding, too, there were different opinions among the telecom players.
According to the present rule, spectrum cap in a frequency band is 50 per cent of the spectrum assigned in each band in the respective service area and 25 per cent of the total spectrum assigned in all bands put together in each service area.
While Reliance Jio, RCom and Sistema Shyam Teleservices favoured the Trai proposal to consider 700 MHz, 800 MHz and 900 MHz as one for the purpose of imposing spectrum holding limit, telecom major Airtel, Vodafone, Idea Cellular, Aircel, Telenor and Tata Teleservices registered their opposition to it. "Reliance Jio believes that with liberalisation of spectrum, the intra-band spectrum caps have lost their relevance," Reliance Jio said, adding spectrum being technology neutral, the intra-band limit has become redundant.
