The 900MHz Telecom Spectrum Refarming in India has been on a Flip Flop for over a year now. Now that the Telecom Commission has recommended that entire spectrum in the 900MHz band should be re-farmed, existing holders like BSNL, Airtel, Vodafone, etc will have to relinquish their spectrum allotted in this band at the time of their license renewals and this will then be put up for auction.
900MHz band is more efficient for both rural and urban coverage relative to the 1800MHz band and almost all of it is held by the incumbents or the state-owned telcos. You can view the complete Spectrum Allocation of 900MHz in India here.
What are the Options before Government ? The Department of Telecom (DoT) had presented three options to the Commission on refarming – 1) Refarm the entire band, 2) Allow retention of 2.5MHz/circle or 3) Allow retention of 5MHz/circle
The decision is due today by the so called empowered Group of Ministers [None of them in my opinion are fit to take this decision as they are neither subject experts nor Politicians of Highest Integrity]
What is the Price of the 900MHz Spectrum ? For the 2012 Spectrum Auction, 800MHz is reserved at 1.3x the price of 1800MHz and why one has to pay 2x of 1800MHz for the 900MHz is a question which DoT / TRAI / Government is tying to Avoid. This is definitely a point of contention which Airtel, Vodafone and Idea will contest.
Assuming on 1.3x reserve price for 900MHz similar to that of 800MHz, Airtel will have to pay an additional spectrum fee of Rs 13,645 Cr when its spectrum will be due for renewal.
What about BSNL / MTNL ? They are no Longer the Companies Providing Services in Rural Areas as this area is services by Idea, Airtel and Vodafone. BSNL / MTNL hold the maximum spectrum in 900MHz band and even these companies must be made to pay to the Government to Level the Playing Field.
Just that we don’t have Radia Tapes in Public domain doesn’t mean Telecom Sector is Clean. Refarming, No Clear Roadmap, Level Playing Field with Additional Spectrum Charges, etc are the work of Lobbyists from Mumbai who neither have the vision nor the goal to put India on the Global map offering best of telecom services.
At the Qualcomm Conference in Delhi, 3G Data Usage is increasing and Mass adoption of LTE is Still 2 years away.