Be ready for increase in mobile tariffs after February 2015 says COAI

Be ready for increase in mobile tariffs

Cellular tariffs are more likely to go up after the airwave auction due in Feb 2015 because the business is reeling under debt, telecom industry physique cellular Operators’ affiliation of India (COAI) mentioned right here.

“The debt burden in the sector is big. It’s already round Rs. 250,000 crore and part of it collected after the final spectrum public sale in Feb 2014. If the airwaves are sold in the upcoming public sale in Feb 2015 at the reserve worth mentioned via the Telecom Regulatory Authority of India (TRAI), then there will be further debt burden of Rs.40,000-50,000 crore on the telecom sector,” Rajan S. Mathews, director common, COAI informed IANS.

“This price should be borne by using the consumers finally,” he brought.

He mentioned the tariff “will indubitably go up” however it’s tough to present an estimate by means of what percentage the tariff may match up,

The TRAI Oct 15 recommended around 10 p.c hike within the reserve price for 1800 mhz band spectrum auction over the past successful worth within the February 2014 sale.

Be ready for increase in mobile tariffs after February 2015 says COAI

“In the 900 mhz band, only the spectrum held by them is available for the public sale. These licensees must win back this spectrum to make sure trade continuity in a license carrier house (LSA); if they don’t, it places the big funding made within the lsas in jeopardy,” the TRAI mentioned prior.

It has set a reserve worth of Rs.3,004 crore per mega hertz for bandwidth to be auctioned in 18 provider areas for the extra environment friendly 900 Mhz band and Rs.2,138 crore per mega hertz for the 1800 Mhz band.

Within the 1800 mhz band, 20 circles are going for auction, whereas within the 900 Mhz band, 18 circles shall be up on the market.

TRAI stated: “1.2 mhz spectrum in 900 mhz band will have to be taken again from BSNL from all of the lsas the place licenses expire in 2015-16 with the exception of in Punjab.”

The earnings target set by way of the federal government in 2014-15 finances from spectrum auction is Rs.45,471 crore. In 2013-14, the public sale generated Rs.40,847 crore.

In Feb 2014, in a ten-day public sale of 900 mhz and 1800 mhz, the federal government mopped up Rs.61,162 crore.