Trai may hold discussions on new method to fix spectrum base price

Discussion in 'Latest Technology News' started by 6pack, Dec 27, 2018.

  1. 6pack

    6pack Well-Known Member
    ex-Mod

    Source: https://economictimes.indiatimes.co...-spectrum-base-price/articleshow/67265224.cms

    Now you know whom to blame for increasing prices of mobile fees...
     
  2. adventureguy

    adventureguy Well-Known Member
    Veteran

    historically financial analysts have been shouting from rooftops that spectrum prices are out of this world. but governments (UPA-I I believe) wanted that sweet sweet dough, went ahead and sold the spectrum at highest prices. Not buying spectrum means telcos will fall behind competitors like telenor did. so they went ahead and bought them at high prices.

    world's highest spectrum prices along with one of world's lowest call rates. It doesn't take a financial guru to see that would lead to huge debts/shitty call quality and unreliable service
     
  3. Julian

    Julian om nom nom
    Veteran

    Can someone ELI5 how a government owns and can charge for electromagnetic radiation (rather, the use of it)? I mean i'm interested in the logic/reasoning behind it?

    Obviously there has to be some kind of regulation in allotment, else it would be a free-for-all with overlap/interference, but charging for something that's essentially free? Like air?
     
  4. rdst_1

    rdst_1 Well-Known Member
    Veteran

    I feel the high prices are justified because of the much higher number of subscribers/customers available in India for the telcos compared to that in US or other countries. Our high population and even higher density of population means that the telcos have a much higher subscriber base to make money off and hence should rightly be charged higher in spectrum fees as they are one time money making opportunity for the govt.
     
  5. OP
    OP
    6pack

    6pack Well-Known Member
    ex-Mod

  6. rdst_1

    rdst_1 Well-Known Member
    Veteran

    If one has to renew their subscription every 10 years then definitely high spectrum prices will be detrimental for a telecom company. Unfortunately when UPA decided to allot these spectrums at low prices, our courts quashed their decision as 'unconstitutional and arbitrary'.
     

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