Advertisement


Advertisement

Thread Rating:
  • 39 Vote(s) - 2.62 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Help Vodafone hits at spectrum price plan
Advertisement
#1
Information 

Vodafone and India’s Bharti have criticised a proposal by the country’s telecoms regulator to increase the price of mobile spectrum, saying it discriminates against older operators.

The Telecom Regulatory Authority of India has recommended a steep increase in the prices of second-generation spectrum that would also see companies holding more than a 6.2 megahertz spectrum paying a one-off fee for the extra bandwidth.

Trai’s proposals to the government come in the wake of a telecoms scandal that has shaken India’s political system, involving the allocation below market prices of 2G licences and spectrum in 2008.

A report by India’s national auditor has concluded that the country’s telecoms ministry had sold off its 2G spectrum at a “throwaway price”, on a “first come, first served basis”.

It said this has cost the exchequer up to $39bn in lost revenue.

Vodafone Essar, the Indian joint venture of the UK’s Vodafone, has come out strongly against the regulator, claiming that its potential one-time pay-out would be Rs17.43bn ($382m).

“Vodafone Essar strongly disagrees with Trai’s new set of recommendations, which are flawed, illogical and discriminatory against the operators who were the first to invest deeply to build the sector,” said India’s second-largest operator by revenues.

Bharti Airtel, India’s biggest operator, which would have to pay Rs40bn under the move, said: “The recommendations by Trai go against the stated principle of the government to offer affordability, fairness and a level playing field.”

Reliance Communications, which is controlled by the Indian billionaire Anil Ambani, could pay up to Rs700m, according to the operators.

While this new pricing mechanism has been suggested by the regulator, it will be the telecoms ministry that makes the final decision. That decision will be taken this year.

Analysts warn that a decision to charge Indian operators could have an adverse impact on one of the country’s most successful industries.

Vodafone’s Indian adventure has been soured by a series of legal battles, including a long-standing dispute with the country’s tax authorities over its $11bn acquisition of Hutchison Essar.

It could face a bill of up to $2.5bn in back taxes.

A further blow could lead it to reconsider its Indian venture, according to several analysts. “Vodafone is tired of being at the centre of controversies,” an analyst with a foreign bank told the Financial Times earlier this year.

http://www.ft.com/cms/s/0/8140b0d2-3490-...z1DWDjxZXu
___________________________________________
Airtel Digital HD Recorder / Kerala Vision Digital TV
Reply
Thanks given by:
Advertisement
Advertisement




Possibly Related Threads...
Thread Author Replies Views Last Post
  General News: Jio introduces Rs 598 prepaid Cricket plan offering free IPL 2020 live streaming,.. nairrk 0 92 09-16-2020, 01:47 PM
Last Post: nairrk
  General News: Vodafone Idea rebrands as Vi; 'Reflection of both brands,' says Kumar Mangalam Birla nairrk 0 108 09-07-2020, 01:55 PM
Last Post: nairrk
  General News: Vodafone launches new short validity prepaid plans at Rs 109, Rs 149 in Delhi circle nairrk 0 102 09-04-2020, 07:45 AM
Last Post: nairrk
  General News: BSNL introduces new Rs. 1,499 prepaid plan: Know benefits, validity and more nairrk 0 106 08-31-2020, 03:19 PM
Last Post: nairrk
  General News: BSNL launches Rs 399 recharge plan with 1GB daily data and 80 days validity nairrk 0 98 08-14-2020, 02:03 PM
Last Post: nairrk
  General News: Reliance Jio, Airtel and Vodafone Idea latest recharge plans: Here’s a full list nairrk 0 226 07-31-2020, 07:17 PM
Last Post: nairrk
  General News: Vodafone launches Rs 819 prepaid plan with 2GB daily data for 84 days nairrk 0 158 07-30-2020, 06:13 PM
Last Post: nairrk
  General News: Vodafone Idea introduces new Red Max and Red Together M postpaid plans in India nairrk 0 135 07-27-2020, 06:08 PM
Last Post: nairrk
  General News: Airtel offers free data on select prepaid plans, discontinues Rs 2398 long-term plan nairrk 0 149 07-24-2020, 01:45 PM
Last Post: nairrk
  General News: Vodafone brings all Idea postpaid customers under Vodafone RED umbrella nairrk 0 142 07-22-2020, 07:15 PM
Last Post: nairrk

Forum Jump:


Users browsing this thread: 1 Guest(s)
Advertisement