I have been thinking about the recently concluded Spectrum auction that was held recently in India. The thoughts have been from different angles, some from technical points, some from business points and few from conceptual points.
The recently concluded so called 3G auction raked in huge chunks of money for the government. But is it really good for us? Ofcourse, the huge spectrum costs, along with the huge costs to roll out the network infrastructure will be passed on to the end customers, that would be us.
India, for long has had the lowest Telecom rates in the world. Many attribute it to the competition brought in by the government policies. Well I think it is not that straight forward.
The competition part is true, but it is not because of good government policies, partly yes but thats not the whole story. It also because the spectrum was sold at an exceptionally cheap price. The new companies rolled out networks charged the user at around 50% of the calling charges of the already set in players, mainly to capture market share. Smaller companies which can survive on lesser margins started the price war. The end product, cheaper call rates for the users. In the meantime the hue and cry is over the media that Government of India licensed the spectrum at dead cheap price, and inturn lost a lot of money.
But then,
When did the Government of India became a Corporation?
Cheaper prices translate to cheaper call rates to user, which allows them to have bigger purchasing power in other places. So, the general public does benefit out of it and moreover, they get to decide how to spend it. This is instead of passing that money to GoI and then ends up in pockets of Politicians and other corruption black holes, which suck in money with no accountability.
I would prefer the present outcome of 2G spectrum. And moreover, I am quite skeptical how affordable the 3G technology would translate to us, compared even to the Broadband Wireless also known as 4G. I am quite hopeful, that we will have better rates in calls and broadband connection in the 4G spectrum.
Yes, the senior Ambani brother may have pulled out the Ace on everyone else and he may jump start the 4G revolution.
With all these thoughts, I have started to see the general Public of India as different from the Government of India, and I have begin to believe that our interest do not necessarily align. Govt. of India now seems just like any other corporation in the world, and one which does not have a very good management. Whats worse , it has tremendous power for its disposal.
Tags: jlt !!! by Kid
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