Telenor, Idea Cellular and Videocon were awarded licences at the end of India’s 2G auction today, but the government raised less than a quarter of its sale target.
The long-awaited auction received bids totalling INR94bn (US$1.7bn), according to…
Telenor, Idea Cellular and Videocon were awarded licences at the end of India’s 2G auction today, but the government raised less than a quarter of its sale target.
The long-awaited auction received bids totalling INR94bn (US$1.7bn), according to telecommunications minister Kapil Sibal, cited in media reports.
Norwegian telco Telenor said it has secured spectrum licences in six telecom zones in India, totalling INR40.18bn (US$0.73bn), of which 33% is to be paid up front. However, it was not awarded spectrum in Mumbai, Kolkata and West Bangal, so will cease operations in these circles.
Idea Cellular won airwaves in all seven zones in which it was set to lose its permits following a court order related to the auction scandal of 2008. Videocon won airwaves in six zones, according to Reuters.
“Today we have won spectrum the 6 most populous circles in India,” said Sigve Brekke, executive vice president and head of Telenor Group’s Asian operations in a statement. “These are also the areas where we enjoy a strong position already, and where we see the highest potential for continued growth and profitability. All of these circles are about to deliver on the financial targets of becoming break-even in 2013.
“The ten months of uncertainty after the licence cancellation have tested the organization’s ability to keep focus, growth and talent intact. Emerging successful in that test means that a much stronger, confident and competitive team has now won back its right to continue.”
