The TRAI Chairman, the private telecom companies, the business community – all are putting much pressure on the government to release more spectrum of all bands for the next auction. Their argument is that if more spectrum is not there, there will be stiff competition and the price will go up, resulting in increase of telecom services. They are also putting pressure for getting the spectrum released from the government departments like defence and also BSNL. They are pointing to other countries, where more spectrum has been released for the private corporates.
All these arguments will seem logical. But India is different from developed countries. India is only a developing country, the regulatory process is at the initial stage and about 50 % of the people are below average income, say below poverty line. You can not compare this situation with the developed countries.
Further, once the valuable and limited spectrum are released and allotted to private companies, you will never be able to take it back, whether for defence purposes or for other government purposes. Security and national defence will be at risk. The private companies will bargain high.
Another reason is that the present auction will get much funds for the government. The corporate wants to get the spectrum cheap. But the customer will never get the benefit out of this. Only their profits will increase.
The corporate wants the BSNL and MTNL to be disabled and weakened so that the private telecoms can increase the rates and finish the PSU telecom companies.
It is necessary that the Government do not fall in to the trap of the private telecom companies, willingly or unwillingly.