In a rare move, leading telecom firms Bharti and Vodafone have criticised the recommendations on spectrum allocation that were made by sector regulator Trai on Tuesday.
These companies, along with Idea, will see large cash outflows if Trai’s fresh recommendations are accepted. India’s top telecom player, Bharti, has termed these recommendations “arbitrary, impractical and perverse”. Vodafone, which also has over 100 million subscribers in India, has termed the fees proposed by Trai as unjustified, especially in the context of price wars that the industry is facing.
In a statement, Bharti Airtel has said that Telecom Regulatory Authority of India’s recommendations overturn all existing policies of the telecom department for the last 15 years. “Besides, these are against all existing global norms for spectrum allocation and efficiency,” it said.
In its statement, the company has also said that these recommendations seem to be tailored to favour select operators at the cost of existing players.
“The telecom industry has seen very little revenue growth in the last six quarters, and has been impacted by unprecedented price wars. Against this context, it is extraordinary that it is now proposed that the industry should pay additional unjustified fees,” said Mr Marten Pieters, managing director and CEO, Vodafone Essar.
The situation in the market is already bad because of too many players, and now the authorities are making it worse by overcharging existing players and raising barriers to consolidation, he said.