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Why India's 4G license auction was a flop

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Why India's 4G license auction was a flop Empty Why India's 4G license auction was a flop

Post by confuzzled dude Tue Oct 11, 2016 8:50 pm

The government began its biggest ever auction of radio frequencies for 4G services earlier this week. It had hoped to raise as much as $84 billion from the sale.

But after five days of bidding, the auction ended with sales of just over $9.8 billion -- and 60% of the total bandwidth on offer was left unsold.

The 700 megahertz band — a frequency that significantly lowers the cost of providing services such as video streaming and mapping -- accounted for about 70% of the government's expected earnings. But it didn't attract a single bid.

Many experts say the government is partly responsible for pricing the licenses too high.

"Everybody's been saying that the 700 [Mhz] pricing is really obscene, they're non-starters," said Prashant Singhal, an India-based telecommunications leader at Ernst & Young. The lack of enthusiasm towards the lucrative band, he added, sends "a very clear message to the government."
http://money.cnn.com/2016/10/07/technology/india-telecoms-4g-auction/index.html?iid=ob_homepage_tech_pool

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