• Latest
  • Trending
  • All
Telecom department eyes reverse auction to meet fiscal needs

Telecom department eyes reverse auction to meet fiscal needs

November 12, 2019

Global Strategic Sourcing Software Market 2017-2026| SAP Ariba, Coupa, Scout RFP, Zycus, Procurify – Galus Australis

April 16, 2020
Weakest link in supply chain threatens car industry revival

Weakest link in supply chain threatens car industry revival

April 16, 2020
New case reported at Lexington LEX2 warehouse

New case reported at Lexington LEX2 warehouse

April 15, 2020
These inventory trackers will notify you when hard-to-find items are back in stock

These inventory trackers will notify you when hard-to-find items are back in stock

April 15, 2020

Last Mile Delivery Market Analysis, Revenue, Share, Growth Rate & Forecast To 2025

April 15, 2020
Antonov An-225 Mriya: world’s largest cargo plane, history, details

Antonov An-225 Mriya: world’s largest cargo plane, history, details

April 15, 2020
Coronavirus | Punjab all set for wheat procurement within lockdown norms

Coronavirus | Punjab all set for wheat procurement within lockdown norms

April 14, 2020
Copperstate Farms Launches International Cannabis Brand DNA Genetics in Arizona Market

Copperstate Farms Launches International Cannabis Brand DNA Genetics in Arizona Market

April 14, 2020
Mzee Moi’s Ksh10B Gift to Gideon

Mzee Moi’s Ksh10B Gift to Gideon

April 14, 2020
Covid Knights: Corporate social purpose in the time of COVID-19

Covid Knights: Corporate social purpose in the time of COVID-19

April 14, 2020
How Tesla And BMW Are Leading A Supply Chain Renaissance With Blockchain

How Tesla And BMW Are Leading A Supply Chain Renaissance With Blockchain

April 14, 2020
Last Mile Delivery Market Worth Observing Growth | UPS, FedEx, SF Express

Last Mile Delivery Market Worth Observing Growth | UPS, FedEx, SF Express

April 14, 2020
  • Supply Chain
  • Logistics
  • Warehousing
  • Procurement
  • Shipping
  • More
    • Strategic Sourcing
    • Spend Analysis
    • Inventory
    • Contact Us
No Result
View All Result
United States International Supply Chain Commission
United States International Supply Chain Commission
Home Strategic Sourcing

Telecom department eyes reverse auction to meet fiscal needs

by usiscc
November 12, 2019
in Strategic Sourcing
0
Telecom department eyes reverse auction to meet fiscal needs
492
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

NEW DELHI: The Department of Telecommunications (DoT) is considering a reverse auction model to ensure that the government is able to raise timely money from sale of bandwidth for meeting fiscal needs without further adding to the financial stress of mobile phone operators.

“The industry is divided; some operators want airwaves at current price, rest want it either at a reduced price or don’t want an auction right now,” a senior DoT official told ET.

“Under the reverse auction model, one could put up all bands for auctions. The bandwidth which doesn’t elicit any response will automatically see a cut, say of 10% in the reserve price. This can once again be repeated till we hit a floor cap, say of 25% below the reserve price, after which we pull the particular bandwidth out of the auction and continue to sell the rest,” the official added.

As reported earlier by ET, new entrant Reliance Jio Infocomm has backed an auction of both 4G and 5G airwaves in the current fiscal year at the prices recommended by the sector regulator, Telecom Regulatory Authority of India. Second largest telco Bharti Airtel, however, is keen on a sale of only 4G airwaves in the current fiscal year and has sought a reduction in the price of sub 1 GH bands.

Market leader Vodafone Idea doesn’t want auctions till 2020. Its chairman, Kumar Mangalam Birla, has recently told top finance and telecom ministry officials that the severe liquidity crunch it was facing may force the telco to default on a Rs 900 crore spectrum-related charge it must pay the government in March.

This has nudged the government to consider some relief measures for the sector at large, with telecom and finance ministry officials having discussed Birla’s proposals that the period of payment for spectrum purchases be increased to 18 years from the current 16, extended the two-year moratorium to three, besides spreading the payment of Vodafone Idea’s Rs 900 crore into 12 instalments. Birla also flagged high levies in the telecom sector — nearly a third of a telco’s revenue goes to the government in the form of different levies — and the recent hike in import duty of telecom equipment apart from the Rs 30,000 crore that is locked up on account of GST payment under the ‘reverse charge mechanism’.

“The way out of such a problem is to not only ease the stress on the sector but to also ensure it grows which will help to revive the sector faster. Thus, the auctions must be designed keeping these points in mind,” the senior official said.

Further, DoT feels that auctions should be made an annual event, with the government putting up for sale whatever bandwidth it has.

“See, all players want different things, we want to ensure that we sell bandwidth on time and of course at prices which are not exorbitant for the sector and that is why we are now considering the reverse auction model,” the official said, adding that the petroleum ministry is currently following the model.

“This way, we don’t lose value of the precious spectrum lying with us and whosoever wishes to buy or needs more bandwidth can buy. If any bandwidth fails to generate demand after it hits the floor price also, then we put it up for auction next year,” the official added.

In August, Trai recommended the starting prices for spectrum in the 4G bands of 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2100 MHz, 2300 MHz and 2500 MHz, besides 5G airwaves in the 3300-3600 MHz bands. It didn’t mention a specific timeline for the sale.

While deciding on the timing and the modalities of the next sale, the communication ministry would need to factor in the views of the finance ministry which needs funds to meet its fiscal deficit target of 3.3% for FY18-19 and for social sector spending in the run-up to the general elections in 2019.

The government has budgeted in FY19 revenue from the sector at Rs 48,661.42 crore, a 58% rise from the year ago, but far lower than the Rs 78,715 crore it received in FY16-17 with the October 2016 bandwidth sales.

Share197Tweet123Share49
usiscc

usiscc

  • Trending
  • Comments
  • Latest

Global Strategic Sourcing Software Market 2017-2026| SAP Ariba, Coupa, Scout RFP, Zycus, Procurify – Galus Australis

April 16, 2020
Antonov An-225 Mriya: world’s largest cargo plane, history, details

Antonov An-225 Mriya: world’s largest cargo plane, history, details

April 15, 2020
3 keys to mitigating severe supply shortages from coronavirus disruption

3 keys to mitigating severe supply shortages from coronavirus disruption

March 18, 2020

Global Strategic Sourcing Software Market 2017-2026| SAP Ariba, Coupa, Scout RFP, Zycus, Procurify – Galus Australis

0
Global Industry Analysis, Size, Share, Growth, Trends, and Forecasts 2016–2024 – ZMR News Reports

Global Industry Analysis, Size, Share, Growth, Trends, and Forecasts 2016–2024 – ZMR News Reports

0
PHOTOS: Ottawa firefighters respond to warehouse fire

PHOTOS: Ottawa firefighters respond to warehouse fire

0

Global Strategic Sourcing Software Market 2017-2026| SAP Ariba, Coupa, Scout RFP, Zycus, Procurify – Galus Australis

April 16, 2020
Weakest link in supply chain threatens car industry revival

Weakest link in supply chain threatens car industry revival

April 16, 2020
New case reported at Lexington LEX2 warehouse

New case reported at Lexington LEX2 warehouse

April 15, 2020
  • Privacy Policy
  • Terms of Use
  • Disclaimer
  • DMCA
  • Contact Us

Copyright © 2020 usiscc.org.

No Result
View All Result
  • Supply Chain
  • Logistics
  • Warehousing
  • Procurement
  • Shipping
  • More
    • Strategic Sourcing
    • Spend Analysis
    • Inventory
    • Contact Us

Copyright © 2020 usiscc.org.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.