Operators Bharat Sanchar Nigam Ltd, Bharti Airtel, Vodafone-Essar, Aircel, Mahanagar Telephone Nigam Ltd and Idea Cellular might have to fork out over Rs 11,200 crore for having spectrum beyond 6.2 MHz, if the government accepts the Telecom Regulatory Authority of India (Trai) recommendations. A bulk of this additional amount — Rs 4,800 crore — will come from the two metros, Delhi and Mumbai, where spectrum beyond 6.2 MHz has been allocated to all players.
The impact, according to telecom experts, will be the most on BSNL and MTNL combined. They will have to pay over Rs 5,000 crore due to the additional spectrum they have got in all circles, followed by Bharti (Rs 3,000 crore) and Vodafone-Essar (Rs 1,715 crore). While BSNL will have to pay around Rs 2,445 crore, MTNL needs to shell out Rs 2,302 crore and Idea, Rs 1,000 crore, according to preliminary estimates by telecom
If this regulations are passed then the most hit will be the two government telecom giants. Both the telecom giants have faced a lot of heat in terms of loss in market share. The loss has resulted in increase in losses for both the companies. Since March 2007 BSNL has almost lost 8% market share while MTNL has lost 3.5% market share. This addition in the cost will add on to the worries faced by them and will add on to the losses and hence further affect the future plans of the companies. It will be very intresting to see the steps the government plans to take especially even as the talk for 3G oction heats up day by day. So the telecom industry is surely the one to follow.
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