2 G auction or revenue sharing model ?
The process of auctioning would definitely push up the cost of telecom license to all players in the field ultimately pushing up the cost of usage to consumers. Instead 10% revenue sharing would yield almost 1500 to 2000 crores per month, and will push up the tariff costs marginally and retain competition in the industry. Otherwise it can lead to cartelisation and survival of big players only. I hope the ministry uses brain instead of brawn after Supreme court verdict. It is always better to collect monthly revenues instead of one time payment which would burden the companies as well as the consumer. Do you all agree ?
Cartoon courtsey : Satish Acharya
Reason: ack
The govt has fixed minimum of Rs 10,000 crores as base price for 2 G auction, this will result in cartelisation because only the big 5 or six can afford, secondly the tariffs will sky rocket. Finally we may see emergence of multiple regional players.
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