Upcoming Outcome of Indian Spectrum Auction - Telenor may shut their operation


Telecom Ministry of India is gearing for one of the biggest auction of spectrum in coming months and expecting to mop-up more than $100 Bn. How good to hear that government is going to garner revenue which will enable them to reinvest in government backed project to kick start the Indian economy.

Indian Telecom service providers are already reeling under more than $70 Bn in debt and recommended base price of very efficient 700Mz is so high that it is enough to bankrupt established players of the ecosystem.

Telenor tried to re-established itself post cancellation of their license post Indian Telecom Department identified Telecom Scam and now operating in 6 Circle of India and 4 out of 6 are non tech savvy states and only 25% of its total user base are Internet user base.

Telenor already ordered infrastructure in order to launch 4G services but they cannot sustain heavy competition in upcoming months and years until unless they are present across all circles. Any user at any point of time prefer service provider offer services across all circle. Many of the low hanging fruits who wants to experience 4G may latch onto Telenor 4G network and subsequently move out another service provider using Mobile Number Portability ( MNP)

Telenor head quarter and Indian management quadrant on multiple occasion indicated that the recommended base price of spectrum in different band are too high and will not help service provider to even achieve RoI.

I believe that Telenor HQ will prefer to quit India and take one time Goodwill and focus on their remaining userbase where they have high ARPU user base. I strongly believe that it will be the first causality of upcoming auction of spectrum

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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

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