Avoid spectrum auctions during shraddh: Telcos to government

They may operate in an industry that thrives on cutting-edge tech, but the country’s top telecom companies aren’t averse to heeding age-old beliefs.

The debt-laden industry has petitioned the government to defer the country’s biggest-ever spectrum auctions by a few days, citing the inauspicious period of ‘shraddh’. The government too is not averse to the proposal and is willing to defer the auctions that are due to begin on September 29. The navratras are due to commence on October 1.

“We have received a request from the telecom players to delay the auctions by a few days, till at least the beginning of the navratras, and we are considering this,” telecom secretary J S Deepak told TOI. “My personal view is that if the operators find it comfortable to have auctions during the navratras, then we may look into it,” he said.

Hindus do not take up new projects or make major purchases during the fortnight before the navratras and the telecom sector is not the only one which keeps close track of the calendar. Companies cutting across sectors -from automobiles and real estate to consumer electronics and durables -play it safe during shraddh and delay product launches to navratras, when the festival season kicks off in the country . Companies delay new launches as they believe that the product will have a “blessed journey” through its life-cycle.

The auctions, which will see the government sell a record 2,354 MHz of mobile airwaves across seven bands, are seen as critical for telecom players and may result in aggressive bidding in some of the frequencies.

Telecom firms have a debt burden of over Rs 3 lakh crore, and they do not want to leave any stone unturned before the all-important auctions, which could fetch the government as much as Rs 5.6 lakh crore if the entire spectrum is sold at the reserve price.

Rajan Mathews, director general of industry lobby group COAI that has members such as Bharti Airtel, Vodafone, Idea Cellular and recently-inducted Reliance Jio Infocomm, defended the operators’ plea.

Asked if the industry was banking on divine intervention, Mathews said: “That is the only thing left. Financial statements are in tatters, bank loans are flying through the roof, interest expenses are rising, and profitability is under pressure. What is the harm in seeking heavenly blessings?”