Bigger Auction Failure: Only SSTL for CDMA Spectrum, No Taker for GSM Airwaves

It seems government’s greedy policy to earn more and more money from telecom spectrum auction hits a total roadblock, as after November-2012′s gloomy spectrum auction show, the upcoming auction to be held by March 2013 is totally rejected by GSM players.

mobile-towerWell I have good news too, MTS users rejoice. The parent company of MTS India, Sistema Shyam Teleservices will definitely bid for 11 circles – Delhi, Mumbai, Kolkata, UP east, UP west, Tamilnadu & Chennai, Kerala, Karnataka, Maharastra & Goa, West Bengal & Sikkim and Gujarat – and being the sole participant in the March 2013′s auction MTS is going to bag the spectrum in all of its top priority circles. MTS did not lost license in Rajasthan circle, and will eventually confirm its operations in another 11 circles.

Department of Telecom issued notice inviting applications for spectrum auction on 3oth January, 2013 and last date for submitting application was 22nd February, 2013. As the list of applicants was available over DoT’s website, there  is only one company – SSTL.

Interestingly GSM lobbies cried after EGoM reduced CDMA spectrum price by 50%, and Govt has plans to refarm 900MHz from incumbents- whose licenses are going to expire in 2014-15. They all demand further price cut and directly against spectrum refarming; and now it’s clear that they act smart by not buying spectrum at high price.

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  • dmk March 2, 2013 10:15 am

    TRAI has to take action aginst MTS like uninor ……….. mts and uninou are same for us

  • Ansari February 28, 2013 11:59 pm

    A common man is not concerned about the Telecom policy, but the outcome of it. when the calling tariff is moving upward, it means something is wrong with the Telecom ministry.
    Hell with the policies of government, we want better and affordable telecom services.

  • Rahul February 28, 2013 2:15 pm

    Airlines- there was a day when 1 Rupee ticket with no tax.
    Then came Rs. 221 tax on 1 Rupee ticket
    Now tax = Rs. 2500 +

    Same will happen in telecom.

  • sairam February 27, 2013 11:38 pm

    i think operators are sceptical about the “permanent tenure” of licences under auction (unlike the earlier 15-20 year tenure). So they are not participating in the auction.

  • drkavint February 27, 2013 7:05 pm

    this tactic of not to participate is going to cost dear… the govt is on election run , with 99% people wanting a change.new government will be in position for harder stand( as hung parliament is projected). they cannot bend for tunes of corporate..(left may provide support for any non congress government).. so mts will be a profitable run.. how ever i guess
    major players will demand 10p per sms and 20p per call for termination charge..
    mts and reliance will play the tune of skype.
    1.offer high end cdma/lte devices with skype call.. throw away data prices of 1gb/30 rs. making airtel/vodafone user look like outdated guys..
    2. offer corporate plans with life time validity.
    3.face book.. facetime users will rejoice, while sms, mms will go in for fate of pagers..
    4. international calls being cheaper( reliance LTE) will have advantage.
    vodafone and airtel have to be very caution at this point.. they have to throw away data premium charges and brace for war…
    cdma is king in data.. to fight it , they have to adapt non data policy like sms, mms and voice call /with video/ video conference..
    they by raising sms charge and voice/data call they are digging their own grave..i remember the famous saying of queen during french revolution” if they dont have bread let them eat cake”
    its my point of view…iam vodafone customer,i too favour 2-5% increase in my tariff but expect nearly 90% reduction in data, mms..bcoz i love vodafone and want them survive..
    just to add i had to pay rs. 9,000 for a phone with features similar of mts mtag, which mts offers at 3,500.. ofcourse mts has not taken the data war serious., when they do so..i expect a plan such as
    200mb free/ month usage for lifetime for 1,000 r.s.(without teethering support).
    500mb/month validity for rs.50( home network)
    5 gb with life time validity for r.s. 500( no validity days)
    oops they can gain in any way… so vodafone beware…

    • DR VENKAT February 27, 2013 9:13 pm

      Well said. I wish all your expectations come true.

    • V.P.Guru February 28, 2013 7:17 am

      We all knows the Golden Duck Story… The Moral is Greed’s never think about the future and facts…

  • Keshav Jha February 27, 2013 2:45 pm

    MTS is taking part in this auction because GoI & SC compelled MTS to do so. Due to GoI corruption PAN India operators became circle wise & customers are facing the difficulties. I will suggest MTS to withdraw the hands and not to bid. We will wait for MTS till another auction. Otherwise MTS will pay more for the same spectrum and some other new bidder in next auction will pay less for the same spectrum and we will be charged at higher rates.

  • saurabh gupta February 27, 2013 2:24 pm

    well now i think docomo can get spectrum in delhi circle if governemnt don’t put other conditions

  • Adil February 27, 2013 1:21 pm

    This corrupt k¡pal is try earn more money which should be named as black money
    When will this idiot stupid kapil
    Be removed from telecom minister post
    We want raja back he was great

    I cant understand one thing that if a person is good at his post then why should that person be removed
    Now we can take an example of Barack Obama he was great and that’s why he has again been chosen as the president

    So the point is when one person is good at his post then he should not be removed (he should be reelected) …??

    • Ripudaman Singh February 27, 2013 10:16 pm

      Hain?? A.Raja was great? Please elaborate how. :o

      • sheuli February 28, 2013 12:33 pm

        raja was great, coz first telecom min tried to break d cartel. there was some irregularities, but cag report was exaggarated. cartel lobby draw media n raja got messed up. now see kapil sibal – why d hell he is not closing 3g roaming??

        • Kingston February 28, 2013 5:31 pm

          100% correct. Raja was great. Without Raja we can not enjoy cheap call rate today. Due to kabil sibal corrupt decision today we are suffering with high call rates. Idiot minister.

    • hmmm February 28, 2013 12:16 pm

      Raja was great? Are you mentally alright?

  • rahim February 27, 2013 12:36 pm

    i think due to price hicking policy goverment are not get any further gsm player like tilinor

  • Saurabh February 27, 2013 12:29 pm

    This is not surprising at all. Actually Goverment especially congress and Mr. Kapil Sibbal wanted to make the country believe that there was no 2G scam. So they kept price too high so that no one participate and they get the chance to say that there was either no loss or very little loss and CAG was wrong. They didn’t listened to planning commission’s recommendation over high price. They used TRAI as a scapegoat and they knew that in case of any uproar, they will put blame on TRAI as they are the one who recommended such a high price.

    From the time I read TRAI recommendations, I was bit surprised as in the report they took the cues from auctions in US, UK, Germany or France but they forget that this is India and people here are not earning or spending like that of their counterparts in US or UK. They didn’t take Industry’s view on setting up the price. Now their greed is killing them. They disobey SC order of auctioning all the spectrum vacated. I think the people in TRAI, DoT and the EGoM were all mentally sick as no one raised objections over high price. May be they are living in another world and aren’t aware of ground realities of our country. On one hand they look to increase teledensity and want broadband for masses and on the other they are looking to charge higher which increases the input cost. These are signs of how illiterate they are.

    We would have seen auction happened in November as a success even if the price was set at not twice but thrice of the 2008 price of Rs.1658 crores. But these idiots kept it 10 times higher. Even the total networth of the companies that lost their licenses were twice at that moment. It was just like asking someone with income of Rs.10 to pay Rs.100. The current price for 1800MHz spectrum should be set for 900MHz and the price for 1800MHz should be halved and the excess amount should be returned to Idea, Videocon, Telenor and Vodafone for their respective circles which they won in November. Otherwise they keep on getting no bidders. Telcos should’ve avoided November auctions.

    • Sajjad ahmed February 28, 2013 12:46 am

      :-) tussi great ho

  • Adil February 27, 2013 12:18 pm

    Guys check out even the court is anger on telecom system of India..they also said what is the reason for 3g failure in India where other country 3g has hit a rock bottom performance

  • AD February 27, 2013 11:30 am

    Hi, Good to hear the news. It didn’t confrimed that it will bid for 11 circles mention here, but it seems to be.
    Still it is good news for those Uninor lovers. Where there is no Uninor, MTS will be there. Wish they will not withdraw before last date. :-)

  • AD February 27, 2013 11:28 am

    Good to hear the news. It didn’t confrimed that it will bid for 11 circles mention here, but it seems to be.
    Still it is good news for those Uninor lovers. Where there is no Uninor, MTS will be there. Wish they will not withdraw before last date.