The telecom industry is looking forward to the spectrum auction with bated breath. While the government expects to make massive profits, telecom companies will be battling each other to gain spectrum to stay in business. The competition became a little easy today as state telecom companies BSNL and MTNL have backed out of the auction.
The Indian government plans to earn about Rs.1 lakh crore. Both BSNL and MTNL have said that they would now be engaging in the auction as they have no use for any additional spectrum.
The Indian government has been criticized for the high base price for the spectrum; even TRAI had suggested lower base pricing for the spectrum. The association of GSM operators COAI and GSMA have said that the auction might end up being a dull affair because of the low availability of spectrum and high price tag.
During the previous auction too, the telecom operators had to borrow heavy sums of money from the bank to buy spectrum that led to a staggering debt for the industry worth Rs. 2.5 lakh crores. COAI has also said that the high spectrum prices will also act as a major hindrance in the audacious Digital India Project of the present government. The auction will be held on February 25.
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