Month: March 2015

Mobile spectrum auction should be about cheapest price

If you don’t know Mobile Spectrum auction is going on at the moment and it has reached 1 lakh crores so far.

Its good that Government gets a one time big payout when the auction ends.

But it also makes the mobile data and call prices higher as the companies have to charge higher prices from consumers to make profits.

Shouldn’t the auction be about which company can provide faster and cheaper data and voice service.

For example

The auction guideline should be who can provide 10 GB of data usage at 8 Mbps data speeds per month. They also should set a base price like 250 Rs per month. This is just an example these can be set by whats reasonably possible.

Now companies bid on how much cheaper they can provide the service etc.

Once the cheapest price is found, multiply it by the total mobile users in that area. You get the price the government gets for spectrum every year. It also could be a percentage of that price like 75%, leaving 25% profits for the mobile companies.

This would get cheaper prices for mobile users and also regular money for Government.

With mobile usage being cheap more data related apps and services will come up. Which in turn will provide more jobs and prosperity. Everyone wins in this situation.

No wonder we have to pay 250 Rs for 1GB of mobile data in the current situation.