Spectrum refarming to impact operators by an additional $24 bn
09 May 2012
Indian telecom operators would incur an additional $24 billion on networks if the government implements a proposal to replace the superior spectrum of older carriers with relatively inferior quality spectrum.
Operators including Bharti Airtel, the country's leading GSM operator, and carriers like Idea Cellular and Vodafone India have been opposing the Telecom Regulatory Authority of India's (TRAI) proposal to refarm their 900 MHz spectrum with inferior 1,800 MHz. The operators licences are to be renewed starting 2014.
During the forthcoming spectrum auction, operators will be forced to buy new radio spectrum, build additional network and replace some of the existing equipment to continue services, according to the Cellular Operators' Association of India (COAI).
COAI is the representative body of Indian telecom operators.
The refarming of spectrum would force operators to write off Rs25,000 crore worth of assets, as some of their existing equipment becomes obsolete, COAI said in a presentation to telecom minister Kapil Sibal.
The telecom industry is also opposing TRAI's proposals for an upcoming spectrum auction, including the base price for spectrum, which is states is nearly 10 times higher than what carriers had paid in a 2008 state grant process.
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