Any BWA spectrum refund to Indian PSU’s would justify same demand from Private players

In continuation to earlier post regarding “India Mulling FDI Limit Removal in Telecom Sector – Should Government focus Policy Clarity &Implementation OR FDI?”; Indian Telecom sector started experiencing another concern. Major Telecom players started to take negative stance on Indian Telecom Story and initiated process. Latest in the round is Augere Ltd, a wholly owned subsidiary of Augere Holding BV based out of Netherland.
Augere Ltd won in BWA auction in 2010 to offer wireless internet service in two states – Madhya Pradesh and Chhattisgarh in 2010 post paying 125 Cr (INR) decided to exit Indian Telecom sector and Ericsson scarped 4G equipment deal. Last 2 years, the unwarranted happenings around license allocation, license cancellations, notice after notice by regulators to licensees for one or another aspect, new amendment in security, roaming, MVAS, MNP, Spectrum auction and many other dented investor confidence. The GoM is mulling possibilities to refund Indian Telecom PSU BSNL BWA Spectrum fee. It clearly indicates that during auction the base pricing was high with low opportunities. The recent inclusion of voice support over 4G network turned the strategy table of won bidder upside down given Reliance Jio countrywide presence. In my point of view, in case GoM agrees to refund to BSNL then Private Player with one or two circle presence is going to surrender their spectrum too. The reason from all stake holders would be one line “Regulatory Uncertainty and Constant change in Clauses”. Analyst might see it more from the consolidation perspective but I feel that one should also see it from Investor confidence perspective. What message government is sending across? Government should also consider early warning message from private 3G service player regarding their threat to government regarding spectrum surrender.

Share this

Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

Related Posts

Next Post »