Auctioning off the spectrum would have clearly exposed the new entrants as well as a fronts for the established companies. It would have been easier to calculate the costs of the new tariffs by factoring in the costs of the spectrum. However, most of the companies donot figure in these costs and instead treat this as a "sunk investment". This is part of the industry standard, I believe, worldwide. They seek to amortorise their investments over a period of time.

You raise a valuable point about companies sucking in money and this perpetual cycle of conflicts that runs over. Fact remains that this "essential" lifestyle product (as I call it) has no unionised consumers to force the companies to improve their act.

Spectrum auction would have forced the companies to come clean on their account books too; we would have known as to where their "internal accruals" are coming in from. Having FDI is a security risk for that matter...a lot of black money flowed in this sector (and stock markets in form of "hot money" to speculate) in recent times. This advantage, may in fact, is nullified.

Its a long shot to debate the pros and cons...A rational avalability and those vying for the same would have come through...plus we would have known for sure the companies that have been hoarding the spectrum in excess of their requirements. Hence, an auction was justified, in my opinion.

It was interesting to read your take on the spectrum issue floating around in the Indian Telecom sector. But what interests me the most is why and how is the issue of 'Auctioning' of spectrum being projected as the best possible option which Raja should have gone for? As we all understand that the Indian Telecom sector would absolutely do very well with new competition as there have been clear cut indications of cartelization among leading GSM operators on tariff pump-ups besides so many other stories doing the rounds. These very people have never wanted this arrangement to be ever disturbed.

Do you think the money they have sucked out of consumers over the years on tariffs, which i am sure must have baffled you too on most of the occassions,would not be again used to keep away the fresh competition by sucking up all the possible spectrum they can buy if auctions are held. Are we not understanding that money which had been pulled from us, the mobile customers, would again be used to assure that they keep the sector to themselves so they can continue to suck our pockets further. Ask yourself, how many new enterants have any chance to compete with the established GSM players in case the spectrum is to be picked through an open auction?
Trust me, you will surprise yourself.

Auctioning off the spectrum would have clearly exposed the new entrants as well as a fronts for the established companies. It would have been easier to calculate the costs of the new tariffs by factoring in the costs of the spectrum. However, most of the companies donot figure in these costs and instead treat this as a "sunk investment". This is part of the industry standard, I believe, worldwide. They seek to amortorise their investments over a period of time.

You raise a valuable point about companies sucking in money and this perpetual cycle of conflicts that runs over. Fact remains that this "essential" lifestyle product (as I call it) has no unionised consumers to force the companies to improve their act.

Spectrum auction would have forced the companies to come clean on their account books too; we would have known as to where their "internal accruals" are coming in from. Having FDI is a security risk for that matter...a lot of black money flowed in this sector (and stock markets in form of "hot money" to speculate) in recent times. This advantage, may in fact, is nullified.

Its a long shot to debate the pros and cons...A rational avalability and those vying for the same would have come through...plus we would have known for sure the companies that have been hoarding the spectrum in excess of their requirements. Hence, an auction was justified, in my opinion.

It was interesting to read your take on the spectrum issue floating around in the Indian Telecom sector. But what interests me the most is why and how is the issue of 'Auctioning' of spectrum being projected as the best possible option which Raja should have gone for? As we all understand that the Indian Telecom sector would absolutely do very well with new competition as there have been clear cut indications of cartelization among leading GSM operators on tariff pump-ups besides so many other stories doing the rounds. These very people have never wanted this arrangement to be ever disturbed.

Do you think the money they have sucked out of consumers over the years on tariffs, which i am sure must have baffled you too on most of the occassions,would not be again used to keep away the fresh competition by sucking up all the possible spectrum they can buy if auctions are held. Are we not understanding that money which had been pulled from us, the mobile customers, would again be used to assure that they keep the sector to themselves so they can continue to suck our pockets further. Ask yourself, how many new enterants have any chance to compete with the established GSM players in case the spectrum is to be picked through an open auction?
Trust me, you will surprise yourself.

Airtel is a confused company.

Airtel is a confused company.