Modi Government’s Plan To Auction Limited Spectrum Disappoints Vodafone

Vodafone, a British telecom giant, on Tuesday said that the Narendra Modi government's plans to auction limited spectrum in February is "disappointing and frustrating". The company also stressed that this will shake the confidence of investor in the Indian government.

After Bharti Airtel, Vodafone is the second-biggest telecom operator in India.

Spectrum crunch is hampering business growth and impacting new investments at a time when data is growing rapidly and subscriber base is getting fatter, said Vodafone.

According to Marten Pieters, Vodafone India MD & CEO, "Even regulator Trai has recommended that fresh auctions should take place only when there is enough spectrum. With limited amount of spectrum on sale, the scenario is disappointing and frustrating for operators. It will be wrong to have an auction with inadequate spectrum and will be quite a disaster for operators."

While the Telecom Regulatory Authority of India (TRAI) had made a pitch for a mega sale of mobile spectrum, including that used for the high-speed 3G and 4G services, the Department of Telecom (DoT) as well as the inter-ministerial Telecom Commission are not too enthused about the idea.

It is important to note that the government has lined up sale of 184 MHz spectrum in the 900 MHz band (all vacated after expiry of licences) and 104 MHz in the 1800 MHz frequency for the next round.
(Image: The Economic Times)