Minimum bid price for 2G spectrum too high: SSTLAugust 7th, 2012 - 9:44 pm ICT by IANS
New Delhi, Aug 7 (IANS) Sistema Shyam Teleservices (SSTL) Tuesday said the minimum bid price fixed for 2G spectrum auction is excessively high and that the CDMA spectrum base price, set 1.3 times more than the GSM price, is not justified.
“Given the realistic sectoral environment and market dynamics, I believe the reserve price for spectrum as approved by the cabinet is excessively high,” said Vsevolod Rozanov, president and chief executive officer, SSTL.
“There is no rationale to support why the 800 Mhz CDMA spectrum should be priced 1.3 times more than the GSM 1800 Mhz spectrum. It is significant to note that the GSM spectrum being put up for auction is liberalized whereas the 800 Mhz CDMA spectrum continues to be non-liberalized,” he added.
The cabinet Friday approved a reserve price of Rs.18,200 crore for 5 Mhz spectrum in 800 Mhz being used for CDMA services, 1.3 times higher than Rs.14,000 crore as the reserve price for 5 MHz in the 1800 MHz band used for GSM services.
SSTL, a joint venture between Russia’s Sistema and India-based Shyam Group, stuck to its earlier demand that the reserve price be Rs.1,658 crore.
The Russian conglomerate, which holds 56.68 percent stake in SSTL, has invested $3.1 billion in the India venture.
It said being a pure play CDMA operator, its legal case is significantly different compared to other mobile operators.
To protect its interest it has filed a curative petition before the Supreme Court.
“I am hopeful that the highest court of the land will look into the merits of SSTL’s case and will give us justice,” he added.
- Cabinet okays Rs.14,000 crore spectrum reserve price (Lead) - Aug 03, 2012
- Government for extending 2G auction deadline to November (Lead) - Aug 07, 2012
- Cabinet okays Rs.14,000 crore as spectrum auction base price - Aug 03, 2012
- Operators want total spectrum available to be auctioned - Mar 22, 2012
- Decision on 2G auction participation only by October: SSTL - Sep 10, 2012
- Ensure money lent to telecom firms is given back: SBI - Feb 16, 2012
- Sistema Shyam's net loss narrows to Rs.528 crore - May 29, 2012
- Sistema Shyam issues over 547 mn shares to Russian government - Mar 30, 2011
- TRAI recommends high base prices for 2G auction - Apr 23, 2012
- TRAI sets high base price for 2G auction, operators cry foul (Lead) - Apr 23, 2012
- EGoM to decide on spectrum pricing Thursday - Jun 20, 2012
- Telecom tariffs to rise 37 to 49 paise at Rs.1,400 crore reserve price: COAI - Aug 06, 2012
- SSTL's quarterly net loss rises to Rs.1,197 crore - Apr 11, 2012
- DoT to consult law ministry on Sistema's notice - Feb 29, 2012
- Operators at loggerheads over 2G spectrum auction - Feb 16, 2012
Tags: 1 658, base price, bid price, chief executive officer, conglomerate, crore, gsm 1800, gsm services, joint venture, legal case, market dynamics, merits, mhz band, mobile operators, New Delhi, sectoral, shyam, spectrum auction, spectrum base, teleservices