No takers for GSM spectrum, Sistema Shyam lone bidder for CDMA
Moneylife Digital Team 26 February 2013

The price of spectrum in the 1800 MHz band in Delhi, Mumbai, Karnataka and Rajasthan was reduced by 30% after no bid was received for them in November. But even after a price cut, there was no taker. Sistema Shyam Teleservices was the lone applicant in the CDMA auction

The government’s 2G second generation spectrum auction next month looks set to be a washout with just one company, Russia’s Sistema, applying for participation in the sale of airwaves that too in just one of the three bands for which bids were invited.

 

Reacting to the muted interest shown by companies, telecom minister Kapil Sibal said: “Fate of this sector is being decided somewhere else. The government has done its best and meticulously followed the Supreme Court order.” “I think that government’s hands were tied… and the result is for everybody to see.” he added.

 

The Department of Telecommunications (DoT) had announced conducting auction for spectrum unsold in November along with spectrum that is being held by operators whose licences are due for renewal in 2014.

 

The price of spectrum (1800 MHz band) in Delhi, Mumbai, Karnataka and Rajasthan was reduced by 30% after no bid was received for them in November. But even after a price cut, there was no taker.

 

“No application was received for the second round of GSM spectrum till the official time of 5.00pm on Monday, while Sistema’s Indian joint venture Sistema Shyam Teleservices was the lone applicant in the CDMA auction,” a DOT source said.  While cancelling 122 2G licences, the Supreme Court on 2 February 2012 had asked the centre to allocate spectrum to companies through auction.

Comments
Dayananda Kamath k
1 decade ago
the supreme court cancelled the licences because there is curruption and rules were changed at the last minute to benefit some operators. hence all the liceneces granted during a. rajas period were cancelled. but the govt and industry took the stance that it was cancelled becasue of the amount of loss involved to the govt.the game is changed to include the bjp govt decisions as well as reserve price is kept high so that they can prove that there is no such demand and loss calculated is wrong. everybody is thinking on that logic.they have successfully fooled the people of india.
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