In what is being seen as an attempt by the Department of Telecommunications (“DoT”) to mend its relationship with the telecom. operators, which has gone sour over spectrum pricing, quantity and call rates and the airwave auctions the DoT has decided to hold consultations between the Telecom Secretary and executives of the telecom operators on a regular basis.

As readers may be aware from our previous posts the Government garnered approximately INR 1.09 lakh crore from the spectrum auctions that were conducted last month, by selling approximately 89% of the total spectrum put for auction at a premium of about 68%. Infact certain press reports indicate that an amount of around INR 28,872 crore, has been paid by the telecom operators to the Government upfront.

The telecom players apparently have been unhappy with the hefty amounts they had to pay  for buying back airwaves and are of the opinion that this high price for the airwaves would result in lower amount available for network upgradation.

The DoT expressed its willingness to hear all the grievances of the industry and take steps to address them. For the initial meetings with the industry, the DoT’s agenda covers a road map on spectrum trading and sharing, spectrum availability and the plan about the quantum of spectrum to be auctioned for different bands.

Further, as per latest media reports, it appears that the Telecom Minister Ravi Shankar Prasad may also hold separate discussions with industry leaders, addressing the issues faced by the industry.

The Government has been of the view that the spectrum auctions would not result in a rise in the telecom tariffs and that the auction allows for consolidation, since it would lead to the survival of the fittest.

Original author: salmanwaris