Successful auction means greater investment in the sector: Sibal

Successful auction means greater investment in the sector: SibalThere are no big losers and no big winners in a successful auction; rather a successful auction means greater investment in the sector, Telecom Minister Kapil Sibal said as he was explaining the rationale for the new spectrum usage rate.

The Empowered Group of Ministers (EGoM) has approved a spectrum usage charge (SUC) of 5 per cent for all the new airwaves to be auctioned early next month.

Sibal told reporters that for all new airwaves, SUC would be 5 per cent but it would be charged at weighted average. He added that it would not matter if the government losses some revenue as their ultimate aim was to benefit the consumers.

Speaking to reporters, Sibal said, "Rationalisation of issue, Nobody should be a loser. More investment is sector means more service and lower tariffs for consumers. Ultimately it is consumers who need to benefit."

The EGoM kept SUC for broadband wireless access (BWA) airwaves unchanged at 1 per cent as the government hasn't made any amendment in the existing contractual obligation.

The spectrum auction is all start on 3rd of February. The auction of spectrum in two separate frequency bands, 900 and 1,800 MHz, is expected to fetch Rs 11,300 crore for the government.