Enough spectrum available to accommodate more operators: DoT
Department of Telecom on Monday said nearly 65 Mhz of frequency would be available for allotment to new and existing players.
DoT has earmarked 100 MHz for existing 2G mobile services. Out of this, so far a maximum of about 35 to 40 MHz per circle has been allotted to different operators and it is being used by them to provide services to about 250 million subscribers, a departmental note said.
"The remaining 60 to 65 MHz, including spectrum likely to be vacated by Defence Services, is still available for 2G services," DoT said in the paper.
Therefore, there is enough scope for allotment of spectrum to few new operators even after meeting the requirements of existing operators and licensees.
An increase in number of operators would certainly bring real competition which would lead to better services and lower tariffs, DoT said, adding that "with four more new players coming in... the mobile tariffs may fall by over 50 per cent from the current level."
Assuming the existing efficiency level of spectrum, DoT is of the view that operators can easily provide services to about 750 million subscribers with 100 MHz earmarked for 2G services.
This would seriously dent the stand of existing GSM operators' lobby COAI that inviting more operators would destabilise the business of existing players.
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