The Telecom Regulatory Body, TRAI wants Airtel & Vodafone among others existing Top Telecom Players in the country to be left out of the 4G Auctions. By doing this, TRAI feels that the industry would be much more balanced. How?
Well, 4G airwaves to be auctioned soon are in 700 Mhz band which is considered to be the most efficient and cost-effective for Data Services among others. The oldest Telecom Operators of the country viz Airtel, Vodafone & MTNL/BSNL and Idea offers Voice Service in 900 Mhz Band and Reliance GSM, Tata Docomo GSM, Telenor and other new Mobile Operators offer the same Voice Services in 1800 Mhz band. The 900 Mhz band requires less Capital and Operating Expenditure as compared to the 1800 Mhz.
To quantify the difference, the new Operators (RGSM, Docomo, Uninor etc.) has told that since Airtel & older operator in 900 Mhz band, they saves around 17,000 crores annually just becuase of the BAND/Frequency Difference.
The older operators would NOT just be a part of Auction, they could get the Spectrum by paying the price determined by the auction. This would give a fair chance for the newer operator to get spectrum for 4G Services.
Also its just a thought as of now and final decision would be taken by DoT soon.