{"id":92675,"date":"2021-03-06T11:05:54","date_gmt":"2021-03-06T05:35:54","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=92675"},"modified":"2021-03-08T11:55:30","modified_gmt":"2021-03-08T06:25:30","slug":"issues-in-the-process-of-spectrum-auction","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/issues-in-the-process-of-spectrum-auction\/","title":{"rendered":"Issues in the Process of Spectrum Auction"},"content":{"rendered":"<p><strong>Synopsis: <\/strong>The government should revisit <a href=\"https:\/\/forumias.com\/blog\/what-are-spectrum-auctions\/\" target=\"_blank\" rel=\"noopener\">spectrum auction<\/a> formats, unrealistic pricing, regulatory norms.<\/p>\n<p><strong>Introduction <\/strong><\/p>\n<p>The telecommunications&#8217; spectrum auction successfully held in India recently. The winning bids in the auction collectively outdid the government\u2019s own low expectations for receipts from the sale of airwaves.<\/p>\n<ul>\n<li>The three largest telecom service providers bought only essential airwaves. They bought it either as renewal or for strengthening their network.<\/li>\n<li>Reliance Jio bought close to 60% of the spectrum. It contributed almost three-fourths of the \u20b977,815 crores. Jio\u2019s contribution of \u20b957,123 crores by itself surpassed the government\u2019s estimate of \u20b945,000-\u20b950,000 crores from the auction.<\/li>\n<\/ul>\n<p>However, the concerning fact is that only 37% of the airwaves on offer found buyers.<\/p>\n<p><strong>What are the issues in spectrum auctioning?<\/strong><\/p>\n<ol>\n<li>Like the auction of the 2016 spectrum, the auction of 700 MHz this time also is not successful.\u00a0 The high reserve price is a reason behind that. It prohibits buyers from auctioning with a motive of gaining from it.<\/li>\n<li>The 700 MHz spectrum is a nationally valuable resource.\u00a0The government\u2019s approach of keeping prices high is hard to understand.<\/li>\n<li>The relatively low frequency <strong>700 MHz is considered ideal for enhancing network availability<\/strong> in large, densely built-up cities. Here, the issue of poor signal penetration inside buildings is an everlasting problem for users and providers.<\/li>\n<li>Other than that, the government needs to take care of the following issues:\n<ul>\n<li>The auction format requires updation, it is evident after looking at the severely reduced number of participants.<\/li>\n<li>Regulatory norms and tax practices will create monopolies in the sector.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p><strong>What are the steps to be taken?<\/strong><\/p>\n<p>The country\u2019s telecom authorities shall reconsider the entire policy framework to tackle current persistent insecurity in the industry.<\/p>\n<ul>\n<li><strong>Firstly,\u00a0<\/strong>Grossly unrealistic pricing of the spectrum should be rationalized.<\/li>\n<li><strong>Secondly, the <\/strong>government must ensure it does not end up hurting the telecom sector.\u00a0 This sector has become a key multiplier of economic empowerment and progress.<\/li>\n<li><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Synopsis: The government should revisit spectrum auction formats, unrealistic pricing, regulatory norms. Introduction The telecommunications&#8217; spectrum auction successfully held in India recently. The winning bids in the auction collectively outdid the government\u2019s own low expectations for receipts from the sale of airwaves. The three largest telecom service providers bought only essential airwaves. They bought it&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/issues-in-the-process-of-spectrum-auction\/\">Continue reading <span class=\"screen-reader-text\">Issues in the Process of Spectrum Auction<\/span><\/a><\/p>\n","protected":false},"author":10315,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[1460,1462],"class_list":["post-92675","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-eco_11","tag-eco_111","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700777645,"cached_date":1704615648},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/92675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10315"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=92675"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/92675\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=92675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=92675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=92675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}