The echo from High-price bid in Spectrum Auction – Cell-phone charges to go up
Posted on: 14/Feb/2014 4:13:46 PM
The Central government had revenue of Rs. 61,000/- Crores from the recent 2G – Spectrum auction. This is higher than the expectations.
Though several companies participated in the bidding for the cell-phone services in Delhi, Mumbai, and Kolkata, only Airtal and Vodafone dominated. These 2 companies have bagged most of the orders. Especially, Vodafone has won many orders making it the only company capable of providing service in all the commercial wavebands.
62% of the revenue to the government will be paid by these 2 companies. Central government has ordered Airtel and Vodafone to pay Rs. 18000 Crores immediately. This has high financial burden. In order to bear this, the 2 companies have planned to charge the customers. They have no other recourse other than raising the existing rates.So, the cell-phone rates are going to increase!
