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Stressed telecom industry not ready for new round of spectrum auctions, says COAI

January 23, 2018


According to the Cellular Operators Authority of India (COAI), the telecom industry will not be ready for the next round of telecom auctions for at least a year. This can be attributed to the ongoing consolidation in the sector and the need to harmonise the spectrum holdings of operators.

The Department of Telecommunications is reportedly keeping an open timeframe regarding the next round of spectrum auctions and is waiting for the Telecom Regulatory Authority of India’s report on the matter before any decision is taken.

The TRAI discussed spectrum auctions with telecom operators last week, who opposed conducting of auctions given the financial stress the sector is undergoing.  According to the COAI, the industry is crippled by hefty levies. However, a potential solution could emerge if the budget redefined the adjusted gross revenue and reduced telecom operators’ contribution to the Universal Service Obligation Fund.


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