Vodafone Idea to govt: No need to hold spectrum auction until 2020


Team Udayavani, Dec 16, 2018, 3:59 PM IST

New Delhi: Amid a raging financial crisis in the industry, India’s largest telecom operator Vodafone Idea has urged the telecom department not to hold spectrum auction till 2020, on the grounds that fresh need for quality radiowaves will arise only once the 5G ecosystem is ready, according to a government source.

A letter to this effect has been written by Vodafone Idea Ltd to the Department of Telecom (DoT), said the source who did not wish to be named.

When contacted, Vodafone Idea Ltd in an e-mail said, “For 5G to work, a robust 4G network is a must. Accordingly, telecom service providers in India are currently focused on optimising 4G networks and making them 5G ready, for which they have sufficient spectrum.”

Once the 5G ecosystem, including enabling hardware, develops and India-specific use cases are successfully piloted, a need for more quality spectrum will arise, the company said adding “this is likely to take up to 2020”.

“In the interim, a diligent implementation of NDCP 2018 (National Digital Communications Policy) that rightly treats telecom as a critical enabler for a digital economy will help the financially stressed telecom sector strengthen. Going forward, spectrum must be made affordable such that it empowers the Indian telecom sector to fulfil its designated role of making broadband accessible to all and for achieving the larger vision of Digital India,” said Vodafone Idea, in an email response to PTI.

The move comes at a time when a majority of telecom players are facing a financial turmoil. Over the past few years, India’s telecom market had become cut-throat where nearly a dozen players jostled for market share, pummelling the call rates to amongst the lowest in the world. Competition has only intensified since 2016, when Reliance Jio Infocomm, owned by India’s richest man Mukesh Ambani, stormed into the market and offered free calls and dirt cheap data. This triggered consolidation in the industry – the most prominent being that of Vodafone and Idea.

In fact, the industry has been seeking urgent relief measures entailing debt restructuring, cut in levies, and release of GST input tax credit locked up with the government. Billionaire Kumar Mangalam Birla, head of Vodafone Idea Ltd, had recently sent an SOS to the government for deferring statutory payments in a sector that is not generating enough cash to even service loans. The Vodafone Idea chief had also expressed concern over Rs 30,000 crore that is locked up on account of GST payment under ‘reverse charge mechanism’. P

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Maravanthe car accident: Body of missing youth found at Hospet

History of freedom struggle not about a few years and some people: PM Modi

Ban on single-use plastic: MCC form teams to make aware shop owners

Row over documentary poster showing Goddess Kali smoking

Suniel Shetty, Vivek Oberoi to star in MX Player series ‘Dharavi Bank’

FIR in Chhattisgarh against BJP MPs for fake Rahul Gandhi video: Cong

Your next big star might come from public ground: HC tells BCCI; asks it to provide basic facilities to budding cricketers


Related Articles More

Gujarat, Karnatka among best states in providing strong ecosystem for startups: DPIIT ranking

HDFC and HDFC Bank merger proposal gets nod from bourses

Discoms outstanding dues to gencos rise 4 pc to Rs 1.32 lakh cr in June

Taxpayers face issues accessing e-filing portal; Infy taking measures, says IT dept

Reliance Industries stock tumbles over 7 pc; ONGC tanks more than 13 pc

MUST WATCH

Tourist gathering, Road Block at Charmadi Ghat

Heavy Rain at Kalasa : Horanadu Kalasa Road Block

NEWS BULLETIN 03-07-2022

The deer swallowed 80 kg. A python weighing 14 feet long!

Vitla College Student doing Good Job


Latest Additions

Maravanthe car accident: Body of missing youth found at Hospet

History of freedom struggle not about a few years and some people: PM Modi

Bengaluru: Woman seeking to return dress bought online loses Rs 1.36L

Ban on single-use plastic: MCC form teams to make aware shop owners

Bengaluru: Unidentified biker misbehaves with woman cyclists; police launch manhunt

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.