From the ashes of defunct telcos, there’s space for a new operator to rise

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Also read | Allot or auction satellite telecom spectrum? Signal clarity, please Yet these are valuable bands because by squatting here, these companies have pushed up the costs of the competing bands for other telecom operators, and thus for the consumers. The never-ending legal disputes ensured that the department of telecom could not put these bands up for auction. Of course, the government, in its ceaseless attempt to maximise the revenue potential from auctions in the sector, possibly did not mind.

But the cost for the Indian telecom sector cannot be missed. Because of this dead wood, the holding of spectrum by Indian telecom companies in various bands is smaller than the corresponding packages in other Asian countries, or, often, non-contiguous. A huge reason for slow internet and call congestion suffered by all operators is these blockages, akin to riding a vehicle on Indian city roads of varying widths, often shrinking or expanding in stretches.

Higher pollution loads on roads are matched by call drops or slow internet in the telecom world. The unutilised spectrums are similar to the defunct but potentially rich oil wells of yore, serving as examples of opportunities missed. In fact, one reason why Aircel and RCom, despite being in bankruptcy courts, are often seen as valuable are the spectrums in their possession.

Also read | The government wants to allocate, not auction, spectrum–and that’s a good move Those airwaves open up tantalising possibilities for the emergence of a new telecom operator that can aggregate the unutilised bands to offer viable competition to the incumbents. Potentially, these spectrums will come cheaper if a bidder buys these companies, as the airwaves would be a part of the package. Then