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An Evident Split Noticed Among the Telecom Companies of India

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An Evident Split Noticed Among the Telecom Companies of India

There has been a noticeable split among the telecom companies of India, Bharti Airtel, Vodafone Idea and Reliance Jio Infocomm. The division is regarding the timeline of the auction of the 5G spectrum and the airwaves’ pricing. While the Department of Telecommunications or DoT is looking forward to planning for the sale, the companies may get involved in extreme lobbying.

According to Reliance Jio, the bandwidth that is available should be offered for sale immediately. The company does not have any issues regarding the pricing suggested by TRAI or the Telecom Regulatory Authority of India. However, as per the second largest telecom company Airtel, the sale of 5G bandwidth should start in 2020. The company wants of an auction of 4G airwaves in the first quarter of 2019. On the contrary, Reliance Jio simply does not want to waste any time.

The only reaction that the telecom secretary has given is informing that the sale of 5G spectrum is expected to commence during the third and fourth quarter of 2019. However, according to some DoT officials, it is unlikely that any auction will take place in the financial year 2019. The telecom industry of India has a debt of more than 7 Lk Cr INR.

According to the President of Reliance Jio, the government should help the telecom companies to stay updated by arranging an auction for airwaves. Thus, the telecom companies will be able to offer better service to the customers as well.

As per the analysts, Reliance Jio is eager for the auction because it wants to serve its users at the greatest speed. The subscriber base of the company is increasing rapidly. While the two competing telecom companies lost almost 9 ml subscribers, Jio added 13 ml subscribers in the month of September. Currently, the company has more than 250 ml subscribers.

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