Spectrum reserve prices high: Telcos

NEW DELHI: Weeks ahead of the spectrum auctions, the telecom industry has said that reserve prices for the airwaves are high and it will be “financially challenging” to ensure a healthy sale. Telecom companies want the government to fix a minimum mandated floor price for voice and internet services, apart from lower taxes and levies to improve their financial position and ensure enthusiastic sale.

Cellular Operators Association of India (COAI), the body representing companies such as Reliance Jio, Airtel, Vodafone Idea, expressed reservations on the government’s spectrum pricing strategy and raised fears that much of the airwaves may remain unsold, like in some of the previous rounds.

S P Kochhar, director-general of COAI, said the industry is saddled with heavy debt and is passing through a tough financial situation, and thus requires support from the government through easier charges.


“It (auctions) would be financially challenging. Apart from auctions, the industry also faces major upcoming expenses on infrastructure upgradation like 5G introduction, network expansion, and fiberisation, which is critical for providing future communication services,” Kochhar told TOI. The government will be auctioning spectrum from March 1.