In a major relief to the Russian telecom giant Sistema, the department of telecommunications (DoT), on Tuesday, filed an affidavit in the Supreme Court seeking extension of its licence periods till after the second round of auctions. However, it said that the successful bidders will have to pay charges from January 19.

“In the event that this Hon’ble Court is inclined to continue to permit these existing operators to offer services till the commencement of operations by the successful bidders in the proposed auction, the Government of India respectfully suggests that this Hon’ble Court may impose a condition that such operators will be liable to pay for the spectrum allotted to them, the price discovered for such spectrum in the proposed auction or the reserve price, whichever is higher, with effect from 19.12.2012,” the DoT affidavit read.

Meanwhile, the company sources said that it will participate in the auction for spectrum in 800 MHz band to be held in March. Sistema Shyam Teleservices Ltd (SSTL), which provides CDMA services under MTS brand will bid in at least in important category “A” and category “B” circles, if the cabinet accepts a recommendation by the empowered group of ministers (EGOM) headed by the union finance minister P.Chidambaram to reduce reserve price for 800MHz band by 50%.

Under the new proposal, the government would fix a reserve price of 2.5 MHz of Rs 4,500 crore for 2.5 MHz of startup spectrum.

MTS did not participate in the auction that was held in November last year. It said that it did not do anything wrong and it had challenged the Supreme Court decision canceling its licences. The company has filed a curative petition in the Supreme Court.