Having participated and won the CDMA spectrum on Monday, SSTL which operates under the brand MTS in India can now continue operation in eight circles.

Last month the Supreme Court had directed that the telcos whose 2G licenses were cancelled following its February 2, 2012 verdict and failed to win spectrum in the auction will have to stop operations forthwith. This also applies to those who did not participate in the auction. MTS said had that a separate order would be issued by the Supreme Court with respect to the company.

SSTL was the lone bidder for CDMA spectrum the auction for which lasted few hours on Monday. The government had put on block CDMA spectrum worth Rs 6,400 crore.

"The applicant (SSTL) is entitled to continue services in eight circles," a bench comprising justices G S Singhvi and K S Radhakrishnan said.

The Circles won by MTS India include Delhi, Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) & West Bengal.

The company would be required to pay INR 3,639 crores for the license period. The terms include payment of 25% of the final bid amount within 10 days, followed by a payment moratorium until March 2016, after which the balance amount will be paid in 10 equal annual installments. The Government of India has confirmed that SSTL will be able to set off the previous license cost of INR 1,626 crores against the new spectrum cost.

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