Is trai's call on spectrum pricing suitable
It is contrary to its own arguments and lays the groundwork for more frequent changes in future.There is always lack of economic rigour in this pricing policy.
Everybody dj vu.This is the same approach on licence allocations and spectrum pricing that have been followed since 1992 when the first licences were issued and challenged legally pandora rings jewelry and cleared in 1994 by the supreme court.Subsequent pricing and allocation of spectrum invariably is short term and ad hoc.
The first attempt to identify a rational, market driven price happened in 2010 when auctions for 3g and high speed internet connection wireless access(Bwa)Array were held.It is not clear why trai finds the hard nosed tests of market potential by seasoned players irrational.
Simplistic views of this kind open up the prospect of a drastic review of the entire exercise again in 18 months, when the economy improves and there's optimism.Can truly be a sound and stable method of policymaking that too in an industry that is crossing rs 200, 000 crore in revenues and is 20 yr old?
Knee jerk reviews of policy every quarter or so cannot be justified.
A rigorous base price derived on sound economic ideas ensures no undervaluation.
Furnish due credit, the trai is probably right that lack of participation in november 2012 auctions was not really collusive.But non contribution does not change the inherent Pandora Bracelets On Sale value of a resource.Telecom is a long pregnancy industry.Profits are not immediate.Policies really end up being stable.Ntp 1999 is a clear example of how a policy has stood the ages.
News reports indicate that while the dot has accepted the trai strategies for proceeding with auction of all spectrum without any special reservations, it has not accepted the logic for lowering Pandora beads cheap the camp price.
Since spectrum will a lot more be allocated for 20 years, anyone betting on discovering this resource would factor in its future potential.There are new capabilities that are emerging and will multiply revenue probabilities.3G networks continue to be rolled out and the real value of data is still unfolding.Subsequently, for a 20 year driver's licence, the sixth or seventh year may possibly be the right time for review not 16 months.
Once and for all, by hiking spectrum usage charges sanctified in bid papers of past auctions, trai has opened a pandora box all past and future bids are open to playing.Personal economic bids are made after factoring in all possible charges and payouts in a bid document.As being a result, regulating short termism is flawed.
Via: please click Associated Content articles