Getting set for the auctions

Almost nine months after the Supreme Court cancelled 122 telecom licences, the process to get back licences began today. Bharti Airtel, Vodafone, Idea Cellular, Tata Teleservices, Videocon Telecommunications and Telewings (part of Norway's Telenor) have put in their bids to be part of the auction for spectrum in the 1800MHz band.

Interestingly, there were no applications from Mukesh Ambani controlled Reliance Industries, Anil Ambani controlled Reliance Communications and Russian leader Sistema Shyam Teleservices Ltd (that operates under the MTS brand.

However, it is widely believed that post the auctions, Videocon  will join hands with RIL, quite on the lines of how Infotel Broadband was acquired by RIL soon after the mid-2010 auction of 3G spectrum. 

Meanwhile SSTL has come out with a statement that says: “Sistema Shyam TeleServices Ltd (SSTL) has consistently maintained that it has been unfairly penalised in the February ruling of the Supreme Court and has filed a Curative Petition seeking to restore its licences. SSTL was the only operator to have applied for a Pan India CDMA spectrum in 2008. There is no finding or suggestion by the CAG report that CDMA spectrum was equally or anywhere near in demand as GSM. SSTL believes it has a strong case and is determined to await its hearing.

In this context, and considering the level of recommended spectrum prices which makes the business case unviable, SSTL had no choice other than not to take part in the 2G auctions for 800 Mhz. SSTL would like to once again reiterate that it is hopeful that the highest court of the land will speedily look into the merits of its case and will give it justice.”

It now remains to be seen how many of these operators will go the whole hog and bid for spectrum. The action is just about beginning.