The Indian Government [Read Politicians and Bureaucrats] despite being recommended several times to come up with a Blueprint / Roadmap for the Indian Telecommunications sector lack the will to do it, and the reasons are obvious, to please some businessmen within the Oligarchic setup and of course get their cut for the bad deed.
From news reports, Govt is certain that 900MHz spectrum refarming is legally tenable and once the existing licences come up for renewal in November 2014, it will be able to take back 900 MHz spectrum from them and give them 1800 MHz spectrum in return. In November 2014, 16 MHz (paired) of 900 MHz spectrum will come up for renewal in Delhi and Mumbai each and 14 MHz (paired) in Kolkata. This 900 MHz spectrum, which it hopes to receive in November 2014, the GoI is planning to auction in March 2013 to Plug the Fiscal Deficit of the country as they drain tax payers money in the Cash for Subsidy scheme or maybe Cash for Votes.
But will the Government Find Buyers at 2x 1800MHz Pricing ? Delhi and Mumbai is yet to witness a successful auction in 1800Mhz and will their be any taker at 2x the price of 1800Mhz Spectrum and that too just within 3 months from now ?
Airtel Vodafone and Idea May Seek Legal Remedy
The existing licence agreement states that the license (spectrum bundled with it) is being given for a 20-year period with a 10-year extension on mutually agreeable terms. Feelers sent from the industry suggest that the GoI might be able to negotiate on the price of 900 MHz spectrum but cannot take it back from the telcos at least for another 10 years (of extension). As refarming is a complex issue and the Courts’ might need time to address the same,and thus expect to put a stay order on refarming (and consequently on the 900 MHz auction) till it has not heard the argument of both the parties (incumbent telcos and the GoI).
If the Government is that desperate, why not take away excess spectrum in 900MHz band from BSNL & MTNL the Worst Performers in the Indian Wireless Sector and give it away to the Businessmen greasing the Government’s hands ?