Telecom licence pricing

S. MURLIDHARAN | Updated on March 12, 2018


What can be the alternative to the vexed issue of pricing of telecom licences?

P.S. Chokalingam, Chennai

Experts are veering round to the view that the government of the day can meter the airwaves used by telecom companies in the same manner as electricity usage is metered, and bill them monthly or in any other periodicity with the rates being pre-announced and subject to revision based on the demand and availability factors among others.

But spectrum or air waves being a scarce commodity, the government will either have to ration it or fix the rate so high that lesser players are crowded out in the inevitable shake-out. It would be less conducive to fraud if instead of a one-time payment, charges are collected depending upon the usage. This will also ensure the survival of the fittest.

Of course, the bottom line could be increase in the telecom user charges for the customers given the fact that telecom companies would pass on the burden to customers, but charges of favouritism and corruption would not arise.

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Published on January 24, 2011

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