GSM operators have raked up the spectrum issue yet again, with Vodafone India seeking the withdrawal of auction guidelines and Telenor a price cut. The GSM service providers’ body, Cellular Operators’ Association of India (COAI), has also sought a 50 per cent cut in the spectrum reserve price across four circles.
India had issued guidelines for the second round of spectrum auction on January 22.
To begin with, Vodafone India Ltd has sought the withdrawal of spectrum auction guidelines, terming them as “illegal, discriminatory and benefiting one set of players”.
In a letter to the Department of Telecommunications, Vodafone India has also sought a revision of auction guidelines for 900 and 1800 MHz (GSM) bands.
According to the Mumbai-based operator, the auction also includes spectrum currently held by Vodafone India in Mumbai, Delhi and Kolkata circles, and so it cannot be put out for auction. This “implies forcible withdrawal of spectrum from the existing service providers”, the company has said.
It also alleged that fixing reserve price for 800 MHZ band (spectrum currently used by CDMA operators) at comparatively low levels benefits a certain set of telecom operators.
TELENOR
Norway-based Telenor, which provides services under the Uninor brand in India, said it will not bid for spectrum in the Mumbai circle unless the reserve price is halved.
“We now look to the DoT and the Supreme Court for an intervention that ensures that the second round of auctions does not fail, and spectrum, being a public resource, is put to public use. Such an intervention is the only way to ensure a successful auction - which means wide participation, all spectrum sold, healthy bidding at possibly higher than reserve price,” the company said in a statement.
Telenor, through its Indian unit Telewings Communications, had in November won spectrum for six telecom zones, and had said it would look at bidding for the Mumbai circle.
COAI
The COAI has also urged the DoT to reconsider the “unsustainable” prices of spectrum. In a letter to Kapil Sibal, Minister for Communications and IT, the operators’ body said with the current prices, the only expected participation can be termed as “coercive participation”.
“… that is only operators having operations to save, may participate under protest,” it said, seeking a 50 per cent reduction in the reserve price of 1800 MHz spectrum in Delhi, Mumbai, Rajasthan and Karnataka circles in the upcoming auction.
“Further, to maintain a level playing field and fairness in the auction, this revised price should be extended to all 21 service areas and not just the circles which saw no bidders,” it added.