Government’s Gain, Telcos’ Loss?

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The yawning fiscal deficit of the government is likely to get some relief with the upcoming spectrum auction, slated for March 4, as it hopes to add Rs 80,000 crore to its kitty by putting airwaves in the 800, 900, 1800 and 2100 MHz frequency bands for sale. But the big question is what repercussion it would have on the telcos, the end-consumers and the Digital India among other initiatives of the government. Telecom service providers are already reeling under huge debt of Rs 250,000 crore, dwindling revenues and at the same time, not to forget their huge investments for rolling out latest technologies.

“There also lies a possibility of operators raising the tariffs to maintain a business case after paying a hefty amount in the auction,” says Sanchit Vir Gogia, Chief Analyst and CEO, Greyhound Research.

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