Mobile Operators Opposes TRAI’s High 2G Auction Base Price, Call Rates May Rise upto Rs.5 Per Min

After burning hands in the 2G and 3G spectrum allocation, India’s Mobile service operators are now standing more to lose. Most of operators have opposed sectoral regulator Telecom Regulatory Authority of India’s (TRAI) recommendations of a base price for auction of 2G spectrum that is higher than the 3G price set in 2010.

TRAI’s move may also hurt Uninor (Telenor) and MTS India (Sistema Shyam Teleservices) which had lost 2G licences after SC canceled 122 licences awarded by Ex telecom minister A.Raja and were planning to rebid. Even leading mobile service providers like Vodafone India & Bharti Airtel which have been around since 1994, could be hit.

Some telecom experts who are unhappy with the TRAI’s recommendations says if mobile service providers were to start charging for the kind of bids at high rates, mobile call rates for Local and National may go up to Rs.2 to Rs.5 per minute from current tariff as low of 30p to 50p per minute.

In first reaction on TRAI’s recommendations, country’s leading mobile service provider Vodafone India said in a official statement ” We believe that several of these recommendations are retrograde and if accepted, will do irreparable harm to the industry. It will hamper the ability to connect the unconnected and goes against the objectives of National Telecom Policy of ensuring improved rural tele-density and right to broadband.”

GSM and CDMA operators association – COAI and Auspi issued a joint statement criticizing TRAI’s recommendations “Trai’s actions seem to be directed towards creating unnecessary constraints for the sector, overlooking the universal rules of sustainability and growth for this sector. Under such inconsistent, regressive and uncertain regulatory environment, it is inconceivable that the telecom industry, which is already in a state of doldrums, will be able to deliver on the Government’s vision of affordable communications, rural penetration and roll-out of data services.”

However, TRAI Chairman JS Sarma said that Telcos have to utilize spectrum efficiently, high quality spectrum cannot come cheap. We have liberalised the spectrum, therefore it is capable of taking up any technology and you are not constrained by GSM technology. So, that is the reason why we have done that.”

Airtel Lauched 4g Services in Kolkata

Airtel today official launched its 4G service on a  TD-LTE, making India one of the first countries in the world to commercially deploy this cutting-edge technology.During the 4G launch Kapil Sibal admitted the fact that 3G spectrum is costly hence the tariff is high. He also told that true internet revolution will come when affordable devices will come in the market. He shared his dream to get every Indian child to have tablet containing e-books instead of a bag full of books.

With this launch, India joins the most advanced telecom markets in the world and marks the beginning of a new chapter in the country’s telecom success story.Airtel’s 4G (TD-LTE) network was launched by Mr. Kapil Sibal, Hon’ble Minister of Communications and Information Technology, Government of India.

After Kolkata Airtel will be launching 4G in Bangalore this month followed by Pune and in Chandigarh the cost of the 4G USIM  will be Rs. 49 and airtel 4G dongle will be priced at Rs7999 indoor wifi CPE @ Rs. 7750

Airtel will offer 4G-LTE services over a wide range of devices including airtel 4G-LTE USB modem (Huawei E392) and airtel 4G LTE Indoor Wireless Gateway (Huawei B593). Airtel officials at the launch event clarified that it requires a 4G enabled 128kB USIM (priced at Rs. 49) to use on the dongle. The airtel 4G LTE data card and WiFi CPE will be network locked. The price of the dongle and WiFi CPE are Rs. 7999 and Rs. 7750 respectively.

With Airtel 4G-LTE you can use mobile internet with bandwidth up to 40Mbps! Don’t surf, just fly! 

Fine prints regarding Airtel’s 4G plans:

1. In order to enjoy 4G LTE services, you will need a 4G enabled USIM card.

2. You will require a 4G enabled device & airtel 4G network to enjoy airtel 4G services

3. All packs will work on both on USB Modem and 4G enabled indoor wi- fi device.

4. Service is available only in Kolkata – soon to be rolled out in Bangalore (within this month), Pune and 

PUNJAB next.

5. You cannot recharge a data pack with another data pack till previous balance is above 500MB.

6. On recharge with new data pack (when balance less than 500MB)/change in existing pack, earlier data balance available in your account will be forfeited.