Telcos would now be paying $250 mln per MHz as a likely avrerage price for new spectrum, including 122 canceled licences. Even if 61 o fthose licenses are purchased at the new price of upto $2 bln on average per operator , that is $12 bln more in the government kitty and hopefully larger at $20-24 bln with all licensees buying the regional spectrum in the new dispensation. 

However that also means an expensive mobile bill as ARPUs below 100 Airtel educates us to grows back in billin grates by 60-70% to pay for the new spectrum and in the case of new telcos making older pricing plans virtually impossible to emulate even though someone with a reputable network like Uninor ( among the newbies) only has 36-40 mln customers and at a much lower ARPU. 

Chidambaram may not be arraigned by the court later this week (today/tomorrow) but uirreparable harm may have been done to the Indian Body politic with or without Sibal Prices can easily cross 4 times the bid (not bid) auction prices used in 2008

Inflation is coming back too and so are dire predictions of slow growth for India as Rupee's best is barely below 50 against the Dollar. All in all time for banks to start the nose down from 5250 to something near 5000 to assess and predicate the course for the rest of the old fisc in waiting for the budget. 

PSE Auctions are still likely a good thing but the government receipts could close on the Spectrum deal faster. Also with the new plan period in action, Infra plays being financed by debt funds  and inviting new participation around the globe are also likely to bring the cheer back as interest rates start the climb down in 2-3 months.

Posted via email from The India Investment Post