COAI opposes decision to refarm all the 900 Mhz spectrum

COAI opposes decision to refarm all the 900 Mhz spectrumThe Telecom Commission's decision to refarm (reallocate) all the 900 Mhz spectrum currently held by various operators has attracted strong objection by the Cellular Operators Association of India (COAI).

The decision of refarming would mean that all incumbent telcos will surrender all the 900 Mhz band spectrum, and then place bids for the same spectrum at new prices that will be much higher than the existing ones.

COAI argued that no country in the world has ever asked 400 million customers to switch networks under the disguise of refarming. The industry group said it would be death knell for the whole industry.

Criticizing the decision, COAI said, "The decision is the death knell for the industry that has been going through rough times due to harsh, unreasonable and irrational decisions of the government on spectrum reserve price, spectrum usage charge and one-time licence fee."

As per estimates, the GSM operators may have to fork out up to Rs 70,000 crore if the government goes ahead with the plan to refarm all the 900 Mhz spectrum. They also warned that the move would force them to hike tariffs, which will hit consumers' pockets hard.

However AUSPI, a lobby group that represents dual-technology operators, has welcomed the telecom commission's decision to refarm all current 900 Mhz spectrum, saying it would create a level playing field between incumbent and new GSM operators.