Column : Broad spectrum trouble
In short, while stating that spectrum should be granted through auctions, Trai has set an abnormally high base price for participating in the auctions at R3,622.18 crore per Mhz in the 1,800 band (GSM). Going by this, a new operator like Uninor whose licence has been cancelled can only remain in the Indian market if it pays R18,110 crore to get 5 Mhz spectrum. The company has already invested around R14,000 crore in the Indian market to create networks etc so far. It is anybodyís guess whether the business case is viable for the company to take the plunge if these recommendations are accepted by the government in its present format.
Letís take the case of another new operator Sistema Shyam that operates in the CDMA segment whose licences have also
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