NEW DELHI: With a large chunk of its key spectrum licenses set to run out next year, Reliance Jio has begun to push hard for the long-delayed spectrum auctions. On Monday, the company wrote a strongly-worded letter to the Department of Telecom (DoT) stating that the delay was “inexplicable” and has called for auctions to be conducted before February 2021.
“We are unable to find any reasonable rationale behind this sudden pause in a successful and fruitful policy of auctioning all available spectrum every year, since the Supreme Court decision in 2012,” the company said. According to the telco, 1461.5 MHZ spectrum in paired bands and 790 MHz in unpaired bands are available for auction, but has been lying unused for the past four years.
The Digital Communication Commission has already recommended reserve prices for the bands, worth a total of Rs 3.92 lakh crore. “The inexplicable delay of four years in auction of spectrum has created a situation of dire spectrum scarcity, which is impacting the quality of experience and growth of services,” the letter said.
Jio’s call for urgent auctions only shows that the four-year battle between the financially well-muscled newcomer and the older, but weaker, incumbents is still underway. According to industry sources, there has been a gaping divide in the telecom industry over the timing of the auctions. While Bharti Airtel and Vi are “completely comfortable” with auctions held later in 2021, Jio is not, according to an industry executive speaking on condition of anonymity.
“Jio is looking at many of its airwave permits, in the important 800 MHz band especially, that are running out next year. Airtel and Vi have some permits running out too, but they have back-ups in those circles. They would also prefer later auctions because they would like to bid when they are healthier financially. Jio’s needs the opposite and is quite comfortable financially,” said the executive.
Jio takes a dig at rivals
In the letter to DoT, it said, “We understand that a few service providers might be opposing spectrum auctions to stifle competition as they have amassed large amounts of spectrum through mergers and acquisitions...”