Vodafone response to TRAI paper on valuation and spectrum price

Vodafone India on Wednesday said the entire spectrum quashed by the Supreme Court should be put up for auction and discrepancy should be addressed.

According to a Vodafone note to telecom regulator TRAI, reserve price of spectrum should encourage purchase of all unsold/idle spectrum in the Indian mobile market.

Vodafone India said reserve price, auction process and spectrum-related policy features overcome fragmentation, facilitate consolidation of spectrum.

The telecom giant says the auction of 900MHz is not only untenable under the existing policy and licensing regime but is also not pursuant to the directions of the apex court.

Auction of 900 MHz may be possible when the E-GSM band becomes available, Vodafone said in its note to TRAI.

Vodafone supports spectrum trading, Vodafone said responding to TRAI’s Consultation Paper on Valuation and Reserve Price of Spectrums.


Vodafone supports spectrum trading because this is an important tool to ensure spectrum is used productively and efficiently and also facilitates consolidation. Spectrum trading has been successfully introduced in numerous countries.

TRAI could recommend its introduction and consult stakeholders on spectrum trading modalities. In line with global practices, more liberal M&A norms and spectrum sharing norms would also benefit all stakeholders.

Indexing historic market prices, to estimate current market prices not appropriate, Vodafone said, adding indexing creates expectations about the future which changes over time.

Earlier, Vodafone said block size of 1.25 MHz is extremely unsuitable, with inbuilt inefficiency leading to wastage.

Suggest fixed SUC per MHz per annum would be the appropriate way to resolve all the anomalies.

The term refarming of 900MHz, as used by DoT, is a misnomer and wholly untenable. Refarming has totally different connotations as accepted by the global telecom fraternity.

It is not applicable in the present Indian context of technology neutrality as well as license extension and where there is no 900 MHz available for refarming.

Any 900 MHz auction is not only untenable under the existing policy and licensing regime but also not pursuant to the directions of the Hon’ble Supreme Court, which has clearly clarified that 900 MHz is not covered under its order of 2 February 2012.

picture source: peter-schuette.de
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