Fortunately, this time such a scenario did not emerge barring few exceptions. For me personally, this was the first time that I was following the spectrum auction as an observer rather than as an active participant. I found several important takeaways from this auction.<\/p>

Consumers Win: Most operators used this auction to plug the gaps in their spectrum portfolio and to cater to the growing demand for data services by acquiring better frequencies for this. As a result, capacity in other frequencies will get free for voice enhancing the overall customer experience for both voice and data.<\/p>

More Consolidation:<\/strong> The telecom industry was already in the consolidation mode with consumers clearly preferring the top three players--Airtel, Vodafone and Idea. The fresh spectrum addition will help established players offer better speeds to their customers, which will drive more consumption of data boosting appetite for infotainment, mobile commerce and other digital services.<\/p>

Future Winners:<\/strong> This spectrum auction has in some ways also earmarked the long-term players and future winners in the ever dynamic Indian telecom industry , renowned for the lowest tariffs in the world. Service providers who believe in offering value to consumers, who have invested to create the desired network and distribution infrastructure, are committed to make the requisite capex investments, and willing to bet on new and emerging technologies have a clear head start.<\/p>

Disciplined Approach:<\/strong> Most service providers had a clear strategy and a planned approach as to the quantum and qua lity of spectrum that they bought in line with their bu siness models and focus. Unlike pre vious time, there was no undue pres sure of acquiring renewal spectrum to continue exis ting business. Respecting the Ecosystem: In the 18 months between the last auction conducted in March 2015 and this one, the telecom ecosystem has evolved significantly to cater to the growing needs of data. Accordingly , the 4G bands of 2300 MHz, 2500 MHz and 1800 MHz, and the 3G band of 2100 MHz with well-developed ecosystem of supportive, affordable handsets, were popular among bidders. Both 2300 MHz and 2500 MHz are bands that allow serious operators to enhance capacity and provide high quality 4G services to consumers due to global ecosystem of both the bands.<\/p>

Respecting the Price:<\/strong> In 700 MHz band, the supportive ecosystem is not well developed and is still evolving.Hence, the high reserve price for 700 MHz ensured that there were no takers for the same. In the 700 MHz band, which is ideal from coverage perspective for reaching broadband to rural In dia, it was an opportunity lost. Despite feedback from industry on the high reserve price, no action was taken to lower the same. One can only hope that never in the future are such reserve prices set, particularly considering that market forces and competition will anyway find the right price level even with realistic reserve prices.<\/p>

Now that the auction has ended, operators will focus on roll-out to leverage spectrum won for enhancing coverage and improve voice and data services. There is need for sharp focus in government on facilitating roll-out by prescribing binding uniform tower and right of way policies across all states in India. Allocation of VE band microwave allocation for backhaul must be done quickly to ensure that the spectrum purchased by operators can be put to optimal use.<\/p>

DoT must undertake harmonisation of all spectrum quickly to enable its consolidation and enhanced capacity .Also, policy roadmap and predictability is necessary on current burning topics like interconnect regime (MTC, FTC), glide-path of SUC to 1% to avoid arbitrage between operators etc. Only then will investments in this critical infrastructure industry accelerate.There is need to seriously consider sunset for the USO fee of 5%, particularly as the sector has seen creeping levels of service tax from 12% to 15% already and with introduction of GST, it could go up even more. This aspect is important to ensure affordable broadband services to consumers.<\/p>

The next battle will be fought in the market for acquiring more customers, retaining existing customers, and improving ARPUs by driving higher consumption.<\/p>

While quality of the network is key , relevant products and services that offer value, cater to the evolving and interchanging needs of individual customer, offer flexibility to switch between voice and data, and super service to delight customers will be the key differentiators for future winners. Indeed, exciting times ahead for Indian telecom!<\/p>","blog_img":"","posted_date":"2016-10-10 08:29:04","modified_date":"2016-10-13 13:25:01","featured":"0","status":"Y","seo_title":"Spectrum Auction 2016: From scarcity to abundance","seo_url":"spectrum-auction-2016-from-scarcity-to-abundance","url":"\/\/www.iser-br.com\/tele-talk\/spectrum-auction-2016-from-scarcity-to-abundance\/1854","url_seo":"spectrum-auction-2016-from-scarcity-to-abundance"},img_object:["","retail_files/author_1473408820_temp.jpg"],fromNewsletter:"",newsletterDate:"",ajaxParams:{action:"get_more_blogs"},pageTrackingKey:"Blog",author_list:"Marten Pieters",complete_cat_name:"Blogs"});" data-jsinvoker_init="_override_history_url = "//www.iser-br.com/tele-talk/spectrum-auction-2016-from-scarcity-to-abundance/1854";">