Monday, May 03, 2010

3G vs 2G spectrum price issue

There is a demand these days from the opposition parties asking Telecom Minister Raja to resign over the price at which the 2G spectrum was sold to the telecom companies and the huge price the 3G spectrum is commanding in the auction being held right now. However, maybe not as planned, the side effect of cheap spectrum is the low voice call rates available to consumer. The higher the price of the spectrum, the more costly the services to the end consumer.

3G spectrum is a luxury service to start with, so it being costly won't hamper the aam janta which is more concerned with getting voice from one place to another. High cost of 3G spectrum does not concern aam janta as it should not affect them. However high cost of 2G spectrum could have been a problem for aam janta as the telecom companies would have passed on the high cost to the people. So an unplanned pleasant side effect of cheap 2G spectrum is lower voice call rates which you and me enjoy.

Maybe the honourable minister can use this as the good reason :)