Trai's assumption unrealistic in spectrum price analysis: COAI

COAI today said telecom regulator TRAI's assessment of the impact of high spectrum price on tariff "continues to be based on some very tenuous and unrealistic assumptions". 

"TRAI has assured the eGoM that tariffs would remain affordable, industry profitability will increase and the government revenues GSM industry body will grow ...catch however is that the TRAI assessment continues to be based on some very tenuous and unrealistic assumptions," COAI said in a statement. 

Cellular Operators Association of India, which represents companies like Bharti Airtel, Vodafone, Idea Celluar, said the Telecom Regulatory Authority of India (TRAI) also "disregarded the fact that increased spectrum, which will come at an increased cost, will be required to support assumption of increase in non-voice services". 

COAI alleged that TRAI has been "non-transparent" in not sharing the cost-model on which it has based its above conclusions. 

Referring to a media interview given by TRAI Chairman (Rahul Khullar) it said, "TRAI Chairman himself...today acknowledged the dire financial straits of the industry resulting from high debt of approximately Rs 2 lakh crores and is, therefore, not left with any capacity to raise this further by the cost of spectrum acquisition and associated costs"

Source: http://cablequest.org/news/telecom-news/item/988-trais-assumption-unrealistic-in-spectrum-price-analysis-coai.htmlSource: http://cablequest.org/news/telecom-news/item/988-trais-assumption-unrealistic-in-spectrum-price-analysis-coai.html