2G Scam Verdict

Vince

Boogie-Man
Skilled
Just saw the news that all the licenses have been cancelled.

http://www.ndtv.com/article/india/supreme-court-cancels-122-telecom-licenses-trial-court-to-decide-on-cbi-probe-for-chidambaram-172521

(Chidambaram seems to have escaped.)

New 2G auctions in 4 months time.

So what does this imply for us 2G users?

Once the telcos are reallocated 2G spectrums, will it mean we will be charged more for 2G?

Also, I hope this doesnt mean that some 2G customers will have to switch providers
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Once the telcos are reallocated 2G spectrums, will it mean we will be charged more for 2G?

Yup

It was thanks to the scam we had the worlds lowest prices

Now we'll have to pay significantly higher prices
 
PC is not spared, his fate to be decided by trial court may be in around a weeks time.

As licenses are cancelled : The implications for customers

They will be allowed to function till new auction process is over (likely to take 4 months).\

If your original company wins the auction you dont have anything to worry about except the charges.

If your original provider fails to grab your circle be ready to be switched to someone else.

As it will be an open auction like 3G mind boggling spectrum fees will be recovered and people get ready to shell more for even basic cellular services.
 
The tariffs will not only rise because of the higher cost of spectrum they will also rise because the operators can. The current price war was sparked by the new entrants, now they will be on a back foot. So the established players can again bring the prices back without worrying about subscriber churn. Where would you go after all.
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If your original provider fails to grab your circle be ready to be switched to someone else.

#Medpal, how does this work?

For eg., i have an Aircel Chennai circle number, and i use their 2g on roaming (which is not charged extra on roaming in Mumbai, where they have an Aircel network )

Is this because they had won the 2G licence for Mumbai circle?
 
Chiddy is spared cause if he is found guilty, next person will be MM. without his approval this scam would not have passed in first place.
 
#Medpal, how does this work?

For eg., i have an Aircel Chennai circle number, and i use their 2g on roaming (which is not charged extra on roaming in Mumbai, where they have an Aircel network )

Is this because they had won the 2G licence for Mumbai circle?

2G licenses were given without auctioning them. That's the whole point of this case. Say, for example, Aircel wins the auction for 2G license in Chennai but not in Mumbai. This will mean that when you come to Mumbai, you will not be on Aircel's network. Rather your phone will latch on to a network that Aircel has tied up with to provide services in Mumbai (exactly like how it would if Aircel did not have any network in Mumbai in the first place)!
 
Don't think the services will need to be stopped till the auction is over.

Tata and Idea will not be impacted much as these are mostly small service areas for them. Idea already has Spice licenses in some service areas out of the ones cancelled.
 
#Vince, like #Pat said, your roaming charges will increase according to the agreements Aircel enters with other providers.

In general be ready to have ridiculous plans from new players (Like it happened in 3G) as auction will push the price of spectrum higher.

Though it will hurt the customers, but as a citizen of country wishing corruption kicked out I will pay that price.
 
Thanks Pat and Medpal
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@Medpal: Yep, but lest jut see *how* much it'll hurt the customers
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Actually if 2G prices were to go up, then 3G would be much more attractive!
 
You will see same what we seeing in HDD market .Whether to go for HDD or SSD.

4 months time given for players whose license is cancelled to again get license with new method which the goverment have to decide and relocate license whether auction or some new spectrum base price method.

Ofcourse price will rise because of following reasons.

1::New price will be in worst case will be according to 2006 and not 2001 hence ofcourse more price .Hence to repay price have to be increased.

2::Most of this money were paid via PSU loans and now pressure is on banks and seeing present scenario i dont see these companies repaying the loan interest for some period untill they get the spectrum again.Hence again if they get allocaion again loan so again interest and this time Psu will charge more so again price increase.

3::Auction is the last thing this operator want.Though not interest the biggies vodafone and airtel will spoil party of this new comers so they dont get it cheap.And even if in auction the license goes to biggies they know from where to get finance in cayman island or psu loans.

4::3G have already burnt a hole in their pocket and now all are getting ready for new thing thats LTE so again finance is needed so again price rise is inevitable.

The only cheer i see is price rise is see is upto 3p to 4p per second call..

So one needs to control his timing on cell.It would be bad for heavy users.Or best go for group plans and tell all to use same company card.

Note:: one looking for some return invest in Bharti airtel shares.Soon they will increase price and stock will jump again 4-10% in a day just like today.
 
I think the news is being manipulated by news channels. AFAIK, the supreme court has cancelled licenses for those who have applied after the year 2008. Airtel is not being affected by this, vodafone is. Correct me if I am wrong.
 
I think the news is being manipulated by news channels. AFAIK, the supreme court has cancelled licenses for those who have applied after the year 2008. Airtel is not being affected by this, vodafone is. Correct me if I am wrong.

All licenses granted in 2008 are cancelled though court accepted in 2001 airtel and voda too got in wrong way.

Rcom,voda and airtel are safe from this order as they got license in 2001.
 
if you see the original list of applicants there are several hundreds.. out of which only a dozen were favoured for the licences most of whom (88 licences awarded) are companies who didnt even meet the criteria of preliminary selection.

so if auction is conducted again, all those companies will apply again, so I dont see any drastic effect in prices for consumers by the biggies as again genuine entry level players will surface. preliminary conditions bar biggies from bagging too much spectrum and were designed to facilitate entry of new players, all these conditions were circumvented to favour a small bunch. as with any news incriminating the establishment and political bigwigs, the media have done a poor job of reporting clear facts. they are propogating unnecessary fear for consumers and giving wrong shade to judgement.

this is just one of the parts (but significant) of the on going 2g scam case. in coming days many political and business heads will roll including ambanis and tatas. I personally feel this is the easiest part of the case to write the judgement, more detailed crookedness is yet to come.

the first and foremost basis of a free market is the unbiased establishment of the rule of law. so this landmark judgement is win for consumers and other genuine entry level players who were screwed initially.

and regarding PC, there is lot of evidence against him, with swamy and also with CBI (the part the trial court will demand from them), so he cannot escape.

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Well, sadly failtel will get all their licenses and increase prices. again

No, there are provisions to prevent spectrum hoarding.

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Vodafone will be First operator who may increase tarrif & may be followed by Airtel.

Time to switch with MTNL & BSNL (if good offer).

As of now artificial infletion is every where & in every sector - Telecome operators got GOLDEN CHANCE - they are not going to miss it
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