The Government’s attempt to sell spectrum has failed yet again with only one telecom company showing interest in participating in the upcoming auction.
Sistema Shyam submitted its application to bid for CDMA spectrum in the 1800 Mhz band.
There were no takers for GSM spectrum despite the Government slashing the base price by a third.
Monday was the last day for submission of applications for the auction scheduled to start on March 11. But, now, with only one player in the fray, the auction is all but over even before it starts. In November, the Government had tried to sell spectrum but the auction got over in two days.
“It’s a tragedy. Country suffers, consumers suffer and the Government suffers. No one is a winner.
“We have been saying all along that the pricing for 1800 Mhz is too high. The entire re-farming of 900 Mhz is fraught with legal issues, so who wants to buy,” said Rajan Mathews, Director-General, Cellular Operators Association of India
COAI has suggested that the entire policy on spectrum sale be sent back to the telecom regulator for a comprehensive re-look.
Market watchers said the lack of response works to the benefit of incumbent GSM players including Airtel and Vodafone because the Government had linked the outcome of the auction to licence renewal and spectrum re-farming.
Fee renewal
Operators, including Airtel and Vodafone, whose 20-year licences will expire over the next few years have been asked to pay a renewal fee based on the final auction price.
If there is no auction, then the Government does not have any yardstick by which to charge the incumbent players.
Sistema Shyam had to participate in the auction because it wants to save its operations post licence cancellation.