Spectrum auction ends – winner details awaited

The Cellular Operators’ Association of India welcomed the end of the spectrum auction, at the end of 11 days of bidding.

The COAI said it was also disappointed that the prices were so high, and requested the government to reduce some of the regulatory levies that were put in place during the era of free spectrum.

“We are glad that the auctions are over and we feel that the Government has emerged as the real winner. While the industry is relieved at the conclusion of the auctions, there also lies disappointment at the winning price points. We are awaiting the details of the results with the list of the winners, which will determine the emerging competitive landscape going ahead,” it said.

Prices of the Delhi and Kolkata circle have gone beyond what was arrived at during the 3G auction that lasted over a month.

Exact details of the winning prices have not been announced by the government yet.

“Also, in order to help the industry overcome this huge financial burden, the government should address the high tax/levy structure on the industry. We would urge the government to reduce the SUC and the USOF levy to 1% to provide some relief to the telcos,” it said.

It also said that some concerns regarding the impact of the auctions on the NTP 2012 objectives – especially related to rural penetration, broadband for all, internet access, etc remained even after the auction.
“It remains to be seen if the operators will have the financial resources to invest in networks and marketing after bearing the high spectrum costs.”