Spectrum auction: Modi government's approach is out of sync with Digital India p

lan
Via The Economic Times | Mar 09, 2015
By Friday evening, bids in the ongoing spectrum auction had reached Rs 77,000 cr
ore, or over $12 billion. They could rise substantially before the auction concl
udes. The bids are great news for the central exchequer. Regrettably, the bids a
lso suggest the government's approach to spectrum is out of sync with its ambiti
ous plan for a Digital India. More on that later. Despite the spectacular bids,
the government would be nervous about the decision of the Supreme Court, which h
as stayed the publication of auction results and the award of spectrum to winner
s. GSM operators have challenged some of the provisions of the auction. We will
know more on the next hearing on March 26. The spectrum being auctioned includes
frequencies in the 800, 900, 1,800 and 2,100 MHz band. Except for the 2,100 MHz
band, almost all of the spectrum being auctioned for any service area, or circl
e, is in use by operators whose 20-year licences will expire in the next few mon
ths. The high bids are not surprising. Several companies face unenviable choices
as they have large investments and revenues to protect.
(The writer is director of Com First India, a consulting company specialising in
regulatory analysis)
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