New Delhi, August 17
The next round of spectrum auction approaching fast, telecom operators have again started clamouring for keeping the base price for the auction low which would allow them to participate and also provide some revenue to the national exchequer.

Operators also point out that a low base price for the spectrum in various bands would also help them keep the call rates down. Shelling out more than the budget would put pressure on their finances and accordingly lead to higher rates to the subscribers.

Telecom companies are of the opinion that higher costs may lead to rates for calls, text messages and other services rising by up to 50 per cent.

They point out that higher value of spectrum would inevitably result in significant increase in consumer tariffs besides leaving spectrum unsold, which has been the case on the last two occasions and also no revenues for the exchequer. The telecom regulator had earlier recommended an about 11-fold increase in the base price for spectrum from the amount paid by operators in 2008.

Some of the telecom operators also face the prospect of their spectrum being auctioned off in the re-farming process being undertaken by the government. The telecom operators to get affected by it would include Bharti Airtel, Vodafone India and Loop Mobile, whose licences expire in 2014. They have warned that the move will lead to a significant increase in mobile tariffs.