The one billion mark has been crossed, when it comes to the telecommunication user-base in India. This is a great achievement for the industry, and along with it comes the task and responsibility of providing even better service to the consumers. Almost a quarter of this one billion have access to the internet, and more are on their way, due to the rise in e-commerce, the initiative of Digital India, etc.
In India, the top four operators have 70% subscribers, while the other players do not have a huge customer base, in order to use the spectrum allocated to them. This has led to ‘spectrum sharing’, which has several benefits.
1. Spectrum sharing will be profitable to all types of operators – those who have a small consumer base can earn revenue on the unused spectrum; whereas those with more subscribers can get hold of more spectrum but at a lower rate.
2. The total spectrum that has been assigned to India is much lower when compared to other countries. The country is serving the same amount of customers even at this rate, which has led to the decrease in quality of service. The sharing and trading of spectrum can lead to spectrum re-farming, and also gives rise to economic benefits.
3. It is noticeable that the Indian Telecom Market will be left with only 6-7 strong market players, and the rest will have to exit the market eventually. In a recent spectrum auction, it was seen that a few major players were in command. This will lead to weaker players leaving the market, in order to avoid making losses.
With spectrum sharing, the Indian Telecom Industry has better hopes of providing uninterrupted services to their clients.
A lot needs to be done before India can compete with countries like China and Europe in this field. But in the long run, and with the right modifications, customers can be seen getting better quality of service at affordable rates.
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