Spectrum dispute: My solution
I came across a great blog on the telecom dispute dealt with great clarity and depth. You can read the same on http://www.neerajgutgutia.blogspot.com/.
It explained Neeraj's point of view over the spectrum tussle in great detail and clarity.
Though i may lack his long experience, in my view, auction of available spectrum by TRAI will be a WRONG move. Let me explain how.
Govt's prime motives are (in order of priority):
1. consumers benefit with quality of service at reasonable rates
2. increasing teledensity
3. making sure market remains competitive
Assuming govt decides to auction all the available spectrum.
Then we will not acheive any, though the cellcos will certainly be very happy and i will sell all to buy their shares.
Lets see what happens to the above objectives in their order of happening:
3. all the spectrum is gone so new players cant enter and thus existing players got legal right to squeeze customers, shoddy service
2.No effort taken to increase no of cell sites by incurring capex. ppor density wiht no investment from players. since there is no entry threat, it becomes monopoly of a few.
1. poor service, high charges, consumers forced to pay...
With no threat of competition, as all the spectrum at their disposal, the successful bidders can rule the mkt with impunity. Sorry Neeraj, i dont agree to this solution.
It explained Neeraj's point of view over the spectrum tussle in great detail and clarity.
Though i may lack his long experience, in my view, auction of available spectrum by TRAI will be a WRONG move. Let me explain how.
Govt's prime motives are (in order of priority):
1. consumers benefit with quality of service at reasonable rates
2. increasing teledensity
3. making sure market remains competitive
Assuming govt decides to auction all the available spectrum.
Then we will not acheive any, though the cellcos will certainly be very happy and i will sell all to buy their shares.
Lets see what happens to the above objectives in their order of happening:
3. all the spectrum is gone so new players cant enter and thus existing players got legal right to squeeze customers, shoddy service
2.No effort taken to increase no of cell sites by incurring capex. ppor density wiht no investment from players. since there is no entry threat, it becomes monopoly of a few.
1. poor service, high charges, consumers forced to pay...
With no threat of competition, as all the spectrum at their disposal, the successful bidders can rule the mkt with impunity. Sorry Neeraj, i dont agree to this solution.
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