Telenor which in November last year won spectrum in Gujarat, Bihar, Maharashtra, Uttar Pradesh east, Uttar Pradesh west and Andhra Pradesh has said that it would be difficult for it participate in the bid for Mumbai, if the reserve price for 1800 Mhz spectrum is not brought down by atleast 50%.

The company had lost its licences following the verdict of the Supreme Court in February last year cancelling all the 122 2G licences allotted during the tenure of the former telecom minister A Raja. These licences were believed to be rigged.  

The company is also planning to seek DoT’s and Supreme Court’s intervention to ensure that the second round of auction to be held in March this year does not meet the same fate as the first one.

“We now look to the DoT and the Hon’ble Supreme Court for an intervention that ensures that the second round of auctions do not also fail and spectrum being a public resource is put to public use”, it said in a statement.

It said that such an intervention is the only way to ensure a successful auction - which means wide participation, all spectrum sold, healthy bidding at possibly higher than reserve price. Almost 70% of available spectrum remained unsold in the first round of auctions. If the DoT and the Hon’ble Supreme Court do not intervene, we apprehend that this second round will be no different than the first.

it said that the exit of competitors like Uninor from Mumbai is certain to have a significant negative impact on mobile phone users in the city. Pre-paid tariffs are expected to increase significantly, in its assessment by as much as 100%

“We are also concerned by the differential treatment between 800 MHz CDMA spectrum and 1800 MHz GSM spectrum. Considering that an unrealistic reserve price caused auctions to fail both of these bands in these circles, it is difficult to understand why the right decision of 50% reduction is being taken only for CDMA operators” it said

Telenor’s Indian unit, Telewings Communications Pvt Ltd had in November secured spectrum for six telecom zones, Gujarat, Bihar, Maharashtra, Uttar Pradesh east, Uttar Pradesh west and Andhra Prades. The company had in November also said that it would focus on the six telecom circles.

Telenor which was a part of the joint venture with  Unitech Group has parted ways with the later following the 2G scam and has find a new partner in Mumbai-based Lakshdeep Investments & Finance.
  
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