Mobile operator MTS India, controlled by Russian conglomerate Sistema, has decided not to take part in the country’s upcoming 2- and 3G spectrum auction.
A spokesperson for MTS India said the company has consistently maintained that the reserve price…
Mobile operator MTS India, controlled by Russian conglomerate Sistema, has decided not to take part in the country’s upcoming 2- and 3G spectrum auction.
A spokesperson for MTS India said the company has consistently maintained that the reserve price of Rs36.46bn (US$586.7m) is too high.
“Such pricing does not take into account the realities of the prevailing ecosystem within the 800 MHz band,” he said.
The spokesperson also noted that the company has approached the Telecom Disputes Settlement and Appellate Board [TDSAT] about directing the Department of Telecommunications [DoT] to rearrange airwaves it won in the March 2013 spectrum auction.
The terms and conditions of that auction allowed MTS India to rearrange frequencies with other operators without attracting an extra charge, he said.
“However, since [MTS India] was the sole bidder during the said auction and there is no other successful operator for the rearrangement of frequencies, it is incumbent upon DoT to rearrange/reassign the frequency to make the spectrum allotted to [MTS India] contiguous.”
MTS India has argued that the allocation of non-contiguous spectrum reduces its efficiency and stands in the way of the adoption of new technologies.
TDSAT has scheduled a hearing on the matter for 18 February, the spokesperson said.
Asked whether MTS India will bid for other spectrum in the auction, he said the company has no such plans.
Today is the final day for operators to apply to participate in the auction. Struggling state-owned telcos BSNL and MTNL confirmed last week that they would not take part.
An Economic Times report today stated that four telcos – Bharti Airtel, Vodafone India, Telenor’s Uninor and Aircel – had submitted applications ahead of the deadline.
The government aims to net a total Rs648.4bn (US$10.21bn) from the auction, also selling, 900 MHz, 1,800 MHz and 2,100 MHz airwaves.
