- Sep 19, 2005
Now you know whom to blame for increasing prices of mobile fees...High base prices for spectrum at auctions, going back to 2010, have been a major contributory factor in the telcos running up debts of around Rs 7 lakh crore.
Trai’s methodology has historically resulted in the spectrum prices in India being among the highest in the world. For example, price of the 600 MHz band sold in the US last year was around Rs 3,500 crore a unit, while the initial price of the 700 MHz band in India in 2016 was set at nearly Rs 11,500 a unit. No telco touched the band in the October 2016 sale. And more recently, Trai’s proposed base price of Rs 492 crore per unit of 3500 MHz 5G spectrum is much higher than Rs 65 crore per unit at a recent 5G auction in Korea, which may limit participation in this band as well in the next sale, said analysts.