Ummid Assistant

IDB scholarship forms available at Bhopal's Companion School

IGNOU's preparatory course for students desiring higher education

Welcome Guest! You are here: Home » Business & Economy

Telecom tariffs to rise 37 to 49 paise at Rs.1,400 crore reserve price: COAI

Tuesday August 07, 2012 09:06:25 AM, IANS

Related Article

Cabinet okays Rs.14,000 crore as spectrum auction base price

The cabinet Friday approved Rs.14,000 crore as the reserve price for the 2G spectrum auction fixed by the Empowered Group of Ministers (EGoM) on telecom. The cabinet, at a meeting here, also approved a base price of Rs.18,200 crore for the CDMA services and spectrum usage charge of three to eight   »

New Delhi: Telecom tariffs would rise 37 to 49 paise per minute led by the cabinet's decision to fix the reserve price for the 2G spectrum auction at Rs.14,000 crore per 5 MHz in the 1,800 MHz band, an industry lobby for GSM operators said Monday.

The Cellular Operators Association of India (COAI), which is also examining legal options against the government, said it will finalise its steps by the end of this week.

"We are examining all the legal options to challenge the policy decisions of the government and are currently talking to our lawyers. We will be able to take a decision on that by the end of this week," COAI director general Rajan Mathews told IANS.

COAI also said this decision would lead to a rise in the industry debt to anywhere between Rs.3.7 lakh crore and Rs.5.4 lakh crore.

"The cabinet has not given due consideration to the fundamental issue of unsustainable high reserve prices which will significantly increase costs, thereby invariably increasing the tariffs," the industry body said in a statement.

"No mention is made as to how the industry, that is already highly leveraged and under a debt burden of Rs.2 lakh crore, will fund the high outflow on account of auction of 2G spectrum, especially in the wake of the banking sector's unwillingness to take on more exposure to the industry," it added.

The final reserve price set by the cabinet is lower than the Rs.18,000 crore suggested by sector regulator TRAI.

According to COAI, the cabinet's decision will severely affect the sustainability of the sector and further add to the investment drought that it is witnessing of late.

It also said Inddia's reserve price is way above the international reserve price per MHz per population.

The reserve price per MHz per population in India (on purchasing power parity basis) of Rs.19.68 is enormously high as compared to Rs.1.06 that Ofcom (Britain's telecom regulator) has recently announced for auction of 1,800 MHz band, it said.

The Supreme Court Feb 2 ordered cancellation of 122 licences issued during the regime of A. Raja and asked the government to re-distribute these licences through an auction for which it has set a Aug 31 deadline.

The Empowered Group of Ministers (EGoM) is scheduled to meet Tuesday to decide on the auction timeline. It was earlier scheduled to meet Monday evening.

Though the government has been reiterating that it is making all efforts to meet the apex court's deadline, industry experts feel that it is likely to seek another extension.

The Supreme Court had initially given the telecom department four months to conduct the aution while cancelling the licences in February but extended the deadline to Aug 31.


 


 


 

Home | Top of the Page

Comments

Note: By posting your comments here you agree to the terms and conditions of www.ummid.com

Comments powered by DISQUS

i

i

 

More Headlines

Gurdwara shooting gunman identified as ex-soldier

'Education, skill development top priority of 12th Plan'

India objects to cancellation of NAM meet on Palestine

Anna disbands Team Anna, leaders perplexed

Mataf capacity to be tripled after expansion

Sushilkumar Shinde's smile helps break ice with opposition

Scientists closer to developing anti-malaria shot

Syrian PM joins rebels, flees to Jordan: Reports

Vice presidential poll: Ansari has edge over Jaswant Singh

Delhi court blast accused killed in Kishtwar

Breaking the glass ceiling in India's tax administration

'World dumps in Africa, India helps build capacity'

 

Top Stories

Vice presidential poll: Ansari has edge over Jaswant Singh

As many as 787 members of parliament will vote Tuesday to elect India's 14th vice president. In the poll, UPA nominee and incumbent Hamid Ansari appears to have a clear edge  »

UPA re-nominates Hamid Ansari for vice president

Jaswant Singh is NDA's vice presidential candidate

 

  Most Read

NASA spacecraft Curiosity lands on Mars

US space agency's nuclear-powered rover Curiosity touched down on Mars Sunday. "Touchdown confirmed for @MarsCuriosity," said a NASA tweet as its scientists celebrated back in headquarters.  »

Syrian PM joins rebels, flees to Jordan: Reports

Syrian Prime Minister Riyad Hijab joined the opposition and fled to Jordan Monday, in what could be the highest-ranking defection in the 17-month uprising. State media claimed Hijab was sacked just two months after his appointment. President Bashar al-Assad had appointed the former  »

 

  News Pick

India objects to cancellation of NAM meet on Palestine

India Monday said it has strongly objected to the cancellation of a Non-Aligned Movement (NAM) meeting on Palestine that was to be held at Ramallah and this only strengthened its resolve to assist the Palestinians  »

Rohingya Muslims face severest discrimination: US Report

The constitution, laws and policies in Myanmar (formerly Burma) restrict religious freedom and Rohingyas Muslims face ‘severest’ form of discrimination and restrictions including on access to education and health  »

Anna disbands Team Anna, leaders perplexed

Team Anna has been disbanded and the work that had started in its name has ended, its leader Anna Hazare announced Monday, three days after the group announced that it would join the political mainstream to further its fight  »

Fiza Mohammed found dead

Fiza Mohammed, aka Anuradha Bali, who had married and was later divorced by former Haryana deputy chief minister Chander Mohan, has been found dead under mysterious  »

 

Picture of the Day

Five organizations viz. Bhopal Gas Peedit Mahila Stationery Karmachari Sangh, Bhopal Gas Peedit Mahila Purush Sangharsh Morcha, Bhopal Gas Peedit Nirashrit Pension Bhogi Sangharsh Morcha, Bhopal Group for Information & Action and Children Against Dow Carbide jointly organised the “Bhopal Special Olympics” on July 26, 2012, a day ahead of the opening of London Olympics 2012.

 

 
 
 
 
 
 
 
 

RSS  |  Contact us

 

| Quick links

News

 

Subscribe to

Ummid Assistant

 

National

Science & Technology

RSS

Scholarships

About us

International

Health

Twitter

Government Schemes

Feedback

Regional

History

Facebook

Education

Register

Politics

Opinion

Newsletter

Contact us

Business

Career

Education

     

 

 

Ummid.com: Disclaimer | Terms of Use | Advertise with us | Link Exchange

Ummid.com is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

© 2012 Awaz Multimedia & Publications. All rights reserved.