Technoglitch
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Norway-based Telenor’s top management expressed concerns over ‘high-priced’ spectrum in India and indicated an exit from the country if it fails to procure frequencies at reasonable price either through auction or trading route. On the one hand the payment burden on the TSPs (telecom service providers) is eased in the initial years and the resources will be utilised in roll-out of the networks, on the other hand there will be no loss to the exchequer,” Telenor CEO Sharad Mehrotra said in the letter.
The letter addressed to Telecom Secretary J S Deepak said that the liberal payment policy can potentially make the frequency band below 1000 Mhz like 900 Mhz band and 700 Mhz band attractive to a lot of telecom companies.
Trai has suggested that government should charge only 10 per cent of bids received for spectrum and balance payment should be made over period of 18 years in equal instalments with interest.
“We earnestly urge the Telecom Commission to accept the Trai’s recommendation of liberal payment terms and notify for the forthcoming auction,” Mehrotra said. Trai has suggested a mega-spectrum auction plan that has potential to fetch government bids worth Rs 5.36 lakh crore. The total recommended reserve price of Rs 5.36 lakh crore for spectrum auction is almost double the cost of all spectrum investment to date in India and more than double the total gross revenues of Rs 2.54 lakh crore posted by all telecom service providers in 2014-15 financial year.
Telenor's suggestion to TRAI: 'Pay as you earn' is a win-win model for spectrum payment – Tech2
The letter addressed to Telecom Secretary J S Deepak said that the liberal payment policy can potentially make the frequency band below 1000 Mhz like 900 Mhz band and 700 Mhz band attractive to a lot of telecom companies.
Trai has suggested that government should charge only 10 per cent of bids received for spectrum and balance payment should be made over period of 18 years in equal instalments with interest.
“We earnestly urge the Telecom Commission to accept the Trai’s recommendation of liberal payment terms and notify for the forthcoming auction,” Mehrotra said. Trai has suggested a mega-spectrum auction plan that has potential to fetch government bids worth Rs 5.36 lakh crore. The total recommended reserve price of Rs 5.36 lakh crore for spectrum auction is almost double the cost of all spectrum investment to date in India and more than double the total gross revenues of Rs 2.54 lakh crore posted by all telecom service providers in 2014-15 financial year.
Telenor's suggestion to TRAI: 'Pay as you earn' is a win-win model for spectrum payment – Tech2
