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Bharti Airtel calls for 2G wave auction
By siliconindia
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New Delhi: Bharti Airtel has thrown its weight behind a proposal to auction fresh spectrum for second generation (2G) services, putting it at odds with nearest rival Reliance Communication (RCom).
Breaking its silence on the controversy over 2G spectrum allocation, Bharti has told telecom regulator TRAI that it 'strongly supports' the recommendation of a government panel that any 2G spectrum beyond 4.4 MHz for existing license-holders should be auctioned and not linked to the number of subscribers, reports Economic Times.
RCom, on the other hand, has demanded that the amount of spectrum a phone firm gets should be limited to 6.2 MHz, taking aim at players such as Bharti that hold radio frequencies beyond the 6.2 MHz level in many circles. India's largest telecom company by subscribers and revenue is sitting on a cash pile of around 
7,000 crore, and its latest move could push up expenses for competition looking to snap up 2G spectrum by virtue of their subscriber base.
The past few months have seen Indian telecom operators - both new entrants and existing operators - unleash a series of tariff wars in a bid to increase their customer base and attract users from smaller towns and rural areas. India's overcrowded mobile phone market now has 13 operators and experts believe it can sustainably support only 4-5 of them.
"Once an operator pays the market-driven price, the market will determine the rewards and the punishments in case the operator does not use the spectrum efficiently," Bharti wrote to TRAI. The Department of Telecom (DoT) had frozen all fresh allocations of 2G spectrum after a government-appointed spectrum panel said that the country should adopt the internationally-accepted auction system for issuing additional airwaves to telcos.
Currently, all mobile services offered in the country - except select offerings by state-run BSNL and MTNL - are provided using 2G spectrum. Bharti also said it supported a telecom department proposal recommending that all existing operators must pay a one-time charge for all 2G spectrum they hold beyond the 6.2 MHz mark if they want to avail the lower levies.
7,000 crore, and its latest move could push up expenses for competition looking to snap up 2G spectrum by virtue of their subscriber base.
The past few months have seen Indian telecom operators - both new entrants and existing operators - unleash a series of tariff wars in a bid to increase their customer base and attract users from smaller towns and rural areas. India's overcrowded mobile phone market now has 13 operators and experts believe it can sustainably support only 4-5 of them.
"Once an operator pays the market-driven price, the market will determine the rewards and the punishments in case the operator does not use the spectrum efficiently," Bharti wrote to TRAI. The Department of Telecom (DoT) had frozen all fresh allocations of 2G spectrum after a government-appointed spectrum panel said that the country should adopt the internationally-accepted auction system for issuing additional airwaves to telcos.
Currently, all mobile services offered in the country - except select offerings by state-run BSNL and MTNL - are provided using 2G spectrum. Bharti also said it supported a telecom department proposal recommending that all existing operators must pay a one-time charge for all 2G spectrum they hold beyond the 6.2 MHz mark if they want to avail the lower levies.