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Infrastructure industry this year
Posted on: 24/Dec/2015 5:14:05 PM
A highly accomplished auction of airwaves and the launch of 4G services are the two notable points for the telecom industry in our country this year. The lingering problems of call drops and hurdles in infrastructure however were major concerns this year.
During the beginning of the year, there was the biggest auction of spectrum when Rs 1.10 lakh crore (nearly $17.6 billion) was garnered by the government for licensing 380.75 MHz of airways in the 900MHz, 1,800MHz and 800MHz and 2100MHz bands across 17 out of 22 telecom circles.
Among the telecom providers who took part in the marathon are Idea Cellular, Bharti Airtel, Vodafone India, Reliance Communications, Reliance Jio, Telenor, Aircel, and Tata Teleservices. Due to the issue of availability of spectrum, in spite of good reception for the auction, the high bid price proved as a dampener. Rajan S Mathews, the director general of the Cellular Operators’ Association of India said the auction resulted in a considerable outflow of funds and it further burdened the industry which is still carrying a debt of Rs 3.5 lakh crore ($53.8 billion).
The huge demand for spectrum has made the auctions unavoidable. Getting a better auction designed is the challenge here, managing less incentive to bid as high as last time.
The auction in the two years cannot bring under control the call drops. The problem got such a shape that even lead to the Prime Minister Narendra Modi voicing for the same. Ravi Shankar Prasad, the Communication Minister also stated that he doesn`t want to be tagged as a Call drop minister.
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