Tata Teleservices exits GSM auction, too

Tata Teleservices, which was in the pre-bid qualifying list for 2G spectrum auctions, has opted out of the GSM auctions, too, after the empowered group of ministers last week agreed to allot it 4.4 MHz of spectrum in the Delhi circle.

The company had paid for the spectrum at the time of getting the licence in 2008.

On Monday, Tata Teleservices opted out of the CDMA auctions after finding the reserve price too high. The management said it has enough spectrum and thus does not need to bid in either of the auctions.

Meantime, Bharti Airtel, Idea Cellular, Vodafone, Videocon and Telewings, which had applied for participation in the 1800 MHz band auction, were declared eligible by the Department of Telecom on Tuesday.
Bharti, which has deposited `102.75 crore, will be participating in 5 circles. Idea Cellular has deposited `1,306.75 crore and will partcipate in 7 circles.

Vodafone deposited `229 crore for 17 circles, Videocon `648 crore for 15 circles and Telewings `1,096 crore for 13 circles.
Industry experts said the auction is likely to witness subdued bidding.

“It is clear that operators have been very selective and have applied for limited circles depending upon their needs,” Jaideep Ghosh, director at KPMG, said.

Rajan Mathews, director general, Cellular Operators Association of India also expects muted bidding due to “exorbitant reserve price”.

“The actual amount is believed to be closer to the reserve price but in select circles like UP and Bihar, where penetration is lower, there might be little active bidding,” Mathews told DNA.
The reserve price fixed is `14,000 crore.

This announcement will be followed by a mock auction on November 7 and 8 and thereafter the e-auction of 1800 MHz band will take place November 12.