Telecom Commission (TC), the highest decision making body of the communications ministry, on Wednesday recommended refarming of all spectrum in 900 MHZ at the time of licence renewal. TC recommendations come ahead of the government's plans to take away these airwaves and resell it through an auction process in early 2013.
TC's recommendation implies that the entire spectrum held by telcos in the 900 MHz band will have to be reallocated. Bharti AirtelBSE 0.88 % has 8 MHz of spectrum in thr 900 MHz band, while for Vodafone that figure is 6.2 MHz.
Telcos will now have two options- either to replace 900 MHz spectrum with 1800 MHz-price of which will be decided in the upcoming auctions, or participate in the 900 MHz auctions that are slated for next year.
TC's recommendations will be a set back for GSM operators as the government has fixed the price of 900 MHz twice that of 1800 MHz. 1800 MHz has been priced at Rs 14,000 crore on a PAN India basis and 900 MHz is likely to be priced twice of that.
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TC's recommendation implies that the entire spectrum held by telcos in the 900 MHz band will have to be reallocated. Bharti AirtelBSE 0.88 % has 8 MHz of spectrum in thr 900 MHz band, while for Vodafone that figure is 6.2 MHz.
Telcos will now have two options- either to replace 900 MHz spectrum with 1800 MHz-price of which will be decided in the upcoming auctions, or participate in the 900 MHz auctions that are slated for next year.
TC's recommendations will be a set back for GSM operators as the government has fixed the price of 900 MHz twice that of 1800 MHz. 1800 MHz has been priced at Rs 14,000 crore on a PAN India basis and 900 MHz is likely to be priced twice of that.
Read More . . . .