India’s BSNL seeks 700-MHz spectrum
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Indian state-owned operator BSNL has approached the nation’s telecoms ministry seeking a portion of the 700-MHz spectrum that was left unsold during the recent major spectrum auction.
The operator has proposed that a 5 MHz block in the 700-MHz band be assigned to the operator through an equity route.
Under the proposal, in lieu of payment, the government’s paid-up equity in BSNL would increase by the value of the spectrum.
BSNL officials told the news agency that the 700-MHz band, when combined with the company’s existing 2500-MHz holdings, would put the operator in a position to roll out 4G services across India.
With India’s telecom market transitioning towards 4G, this would allow BSNL to compete against private sector incumbents as well as newcomer Reliance Jio Infocomm.
The 700-MHz spectrum put up for sale during India’s recent $9.8 billion spectrum auction went completely unsold – despite the attractiveness of the band for mobile operators – due to a high reserve price. Operators had already accrued substantial debts during previous auctions, and shied away from both the 700-MHz and 900-MHz bands.
Questions & Answers
Q.Why did the 700-MHz spectrum remain unsold during the recent auction?
Why did the 700-MHz spectrum remain unsold during the recent auction?
The 700-MHz spectrum, despite being attractive to mobile operators, went unsold due to a high reserve price. Operators had accrued substantial debts from previous auctions.
Q.How does BSNL propose to acquire the 700-MHz spectrum without direct payment?
How does BSNL propose to acquire the 700-MHz spectrum without direct payment?
BSNL proposes an 'equity route' where the government's paid-up equity in BSNL would increase by the spectrum's value, in lieu of a cash payment.
Q.What is the strategic benefit for BSNL if it acquires the 700-MHz spectrum?
What is the strategic benefit for BSNL if it acquires the 700-MHz spectrum?
Acquiring the 700-MHz spectrum, combined with its 2500-MHz holdings, would allow BSNL to roll out 4G services across India and compete with private sector rivals.
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