Videocon Telecommunications Withdraws Bid for CDMA Spectrum

Videocon Telecommunications today withdrawn its bid for the 800 Mhz band – CDMA Spectrum in the upcoming 2G Spectrum Auction of India. On October 29 Videocon has announced as a pre-qualifier in bidding process by Department of Telecommunications (DoT). The last date for withdrawing applications is 5 November.

Videocon Withdraws CDMA Spectrum

Videocon which has also applied for GSM spectrum, had got the 2G licenses for 21 telecom circles in 2008 which has been cancelled by the supreme Court in 2G Verdict in February 2012. The operator’s GSM services are already up and running in selected circles like Tamilnadu, Mumbai & Maharastra, Gujarat, Haryana, Punjab and Kerala. While 18 circles out of 22 are listed on Videocon’s website to show their minimal presence to meet roll out oligations.

As per applications submitted for the auctions, the now only interested telcos in 800 mhz is Tata Teleservices (TTL) which wants to get back the three circles it lost last time after the Supreme Court cancelled 122 licenses earlier this year. Reliance Communications (Rcom) and Sistema Shyam (MTS India) have stayed away from the auctions entirely. Tata Teleservices and Videocon have already deposited over Rs. 22.5 crore and Rs. 220 crore, respectively.Now Videocon withdrawn its bid for the CDMA spectrum so now Tata Teleservice surely get 800 mhz spectrum at the base price itself.

The 2G spectrum auction is to take place on November 12 and the final list of bidders will be announced on November 6. This will be followed by a mock auction on November 7 and 8 and thereafter the e-auction of 1,800 MHz band will take place on November 12.The start of e-auction of 800 MHz band (CDMA) will happen two days after close of the 1,800 MHz band (GSM) auction.The payment of the successful bid amount will have to be done within 10 days of the close of the respective e-auctions.

This Article Was Written By: Sanjay Bafna

Sanjay Bafna - National Editor (Telecom and Mobile Phone)

Sanjay Bafna is an entrepreneur and National Editor at TelecomTALK covering Mobile Operators, 3G, Broadband, 4G, LTE, Telecom Policies & Regulations and Mobile Phones. He is well known Telecom and Mobile Analyst, Love Tea and Chocolates.

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  • PS December 10, 2012 4:00 pm, 4:00 PM

    @PIKE Now they are starting 4G WTF……..Can’t give service for 2G and starting 4G…….GREAT INDIA

    Reply
  • Pike November 25, 2012 11:47 pm, 11:47 PM

    PS :
    Videocon recharge is not available from nearly 20 days now and a week ago My videocon sim has been blocked…it says invalid number when called frm other number…..no intimation from videocon….when I called their cc I was told to resubmit documents AS THEIR SYSTEM SHOWED ADDRESS VERIFICATION FAILED…..A BIG SHOCK FOR ME BECUSE I AHVE BEEN USING THIS NUMBER SINCE 2 YEARS …Still I went to their store at Sion….i was told that they are not accepting any documents as videocon company officials have told them to do so….AND THEY HAVE BARRED MANY NUMBERS…that guy told me to wait till 12th and that services would automatically get started and videocon would intimate everyone to port their numbers as it is going to shut down and maybe bought over by Reliance….BUT TILL TODAY NO REACTIVATION….NO RECHARGE…..SO JUST FORGET PORTING ANDI THINK I WILL HAVE TO FORGET MY NUMBER TOO…..my number is like oxyegn for my business and this diwali I just got screwed up for trusting videocon…will never buy any vidocon stuff in the future!!!!!!!!! I JUST HOPE THEY REACTIVATE SERVICES SOON AND LET ME PORT…I JUST WANT MY NUMBER!!!!!!!!

    my videocon no.also barred ! There is no value for loyal customers ! They like the people who use just their talktime at initial and throughing out the sim after using talktime ! VIDEOCON GO OUT OF THE COUNTRY !

    Reply
  • Pike November 25, 2012 11:45 pm, 11:45 PM

    PS :
    Videocon recharge is not available from nearly 20 days now and a week ago My videocon sim has been blocked…it says invalid number when called frm other number…..no intimation from videocon….when I called their cc I was told to resubmit documents AS THEIR SYSTEM SHOWED ADDRESS VERIFICATION FAILED…..A BIG SHOCK FOR ME BECUSE I AHVE BEEN USING THIS NUMBER SINCE 2 YEARS …Still I went to their store at Sion….i was told that they are not accepting any documents as videocon company officials have told them to do so….AND THEY HAVE BARRED MANY NUMBERS…that guy told me to wait till 12th and that services would automatically get started and videocon would intimate everyone to port their numbers as it is going to shut down and maybe bought over by Reliance….BUT TILL TODAY NO REACTIVATION….NO RECHARGE…..SO JUST FORGET PORTING ANDI THINK I WILL HAVE TO FORGET MY NUMBER TOO…..my number is like oxyegn for my business and this diwali I just got screwed up for trusting videocon…will never buy any vidocon stuff in the future!!!!!!!!! I JUST HOPE THEY REACTIVATE SERVICES SOON AND LET ME PORT…I JUST WANT MY NUMBER!!!!!!!!

    my videocon no.also barred ! There is no value for loyal customers ! They like the people who use just their talktime at initial and throughing out the sim after using talktime ! VIDEOCON GO OUT OF THE COUNTRY !

    Reply
  • radhey shyam pandey November 14, 2012 4:28 pm, 4:28 PM

    dear sir i am customer of videocon mobile services with mob 8828957150 for 2 years.now no network is available at this number because of videocon .then how can i port my number into other service provider .this number is my necessty like primary needs(water roti home and cloths

    Reply
  • PS November 13, 2012 4:02 pm, 4:02 PM

    Videocon recharge is not available from nearly 20 days now and a week ago My videocon sim has been blocked…it says invalid number when called frm other number…..no intimation from videocon….when I called their cc I was told to resubmit documents AS THEIR SYSTEM SHOWED ADDRESS VERIFICATION FAILED…..A BIG SHOCK FOR ME BECUSE I AHVE BEEN USING THIS NUMBER SINCE 2 YEARS …Still I went to their store at Sion….i was told that they are not accepting any documents as videocon company officials have told them to do so….AND THEY HAVE BARRED MANY NUMBERS…that guy told me to wait till 12th and that services would automatically get started and videocon would intimate everyone to port their numbers as it is going to shut down and maybe bought over by Reliance….BUT TILL TODAY NO REACTIVATION….NO RECHARGE…..SO JUST FORGET PORTING ANDI THINK I WILL HAVE TO FORGET MY NUMBER TOO…..my number is like oxyegn for my business and this diwali I just got screwed up for trusting videocon…will never buy any vidocon stuff in the future!!!!!!!!! I JUST HOPE THEY REACTIVATE SERVICES SOON AND LET ME PORT…I JUST WANT MY NUMBER!!!!!!!!

    Reply
  • jigar November 11, 2012 7:51 am, 7:51 AM

    Pike :

    jigar :

    Pike :
    But there is no official announcement and still i get signal and videocon cc keep on telling we r not going to shutdown & recharge issue will be cleared soon !

    Ya bro.. You are absolutly right…Waiting for 2G auction which is on 12-Nov.2012..But till this date i never faced any recharge or Gprs speed issue also in Peak Hours in my city area..see today’s my speedtest result @ 8:47 P.M See this link

    my outgoing call facility is blocked/stopped in videocon from last 5 days ! I can’t able to get cc line also , only incoming calls are receiving !
    Videocon users share ur condition of network !

    i’m not facing any issue even i got easily reacharge yesterday and also i get speedtest result 235 kbps Downloading & 100 kbps upload speed yesterday @ 8:47 P.M.

    Reply
  • Pike November 11, 2012 12:29 am, 12:29 AM

    jigar :

    Pike :
    But there is no official announcement and still i get signal and videocon cc keep on telling we r not going to shutdown & recharge issue will be cleared soon !

    Ya bro.. You are absolutly right…Waiting for 2G auction which is on 12-Nov.2012..But till this date i never faced any recharge or Gprs speed issue also in Peak Hours in my city area..see today’s my speedtest result @ 8:47 P.M See this link

    my outgoing call facility is blocked/stopped in videocon from last 5 days ! I can’t able to get cc line also , only incoming calls are receiving !
    Videocon users share ur condition of network !

    Reply
  • jigar November 10, 2012 8:55 pm, 8:55 PM

    Pike :
    But there is no official announcement and still i get signal and videocon cc keep on telling we r not going to shutdown & recharge issue will be cleared soon !

    Ya bro.. You are absolutly right…Waiting for 2G auction which is on 12-Nov.2012..But till this date i never faced any recharge or Gprs speed issue also in Peak Hours in my city area..see today’s my speedtest result @ 8:47 P.M See this link

    Reply
  • ram November 10, 2012 7:34 pm, 7:34 PM

    when the videocon shutdown

    Reply
  • Chalama November 5, 2012 4:18 pm, 4:18 PM

    It wll going to shutdown by Jan 2013

    Reply
  • Pike November 5, 2012 3:33 pm, 3:33 PM

    But there is no official announcement and still i get signal and videocon cc keep on telling we r not going to shutdown & recharge issue will be cleared soon !

    Reply
  • Pike November 5, 2012 3:32 pm, 3:32 PM

    But there is no official announcement and still i get signal and videocon cc keep on telling we r not going to shutdown & recharge issue will be cleared soon!

    Reply
  • Pike November 5, 2012 3:31 pm, 3:31 PM

    But there is no official announcement and still i get signal and videocon cc keep on telling we r not going to shutdown & recharge issue will be cleared soon !

    Reply
  • Sudhakar November 5, 2012 6:55 am, 6:55 AM

    Pike :

    Shutdown. Why doubt?.

    Reply
  • Pike November 4, 2012 4:00 pm, 4:00 PM

    What is the future of videocon ?
    Shutdown or Continue ?

    Reply
  • Arjun November 4, 2012 1:02 pm, 1:02 PM

    Videocon is gone case.

    Reply
  • Tiju November 4, 2012 10:49 am, 10:49 AM

    I think videocon is backed by R-com and a couple of days B4 EGoM decided that companies buying an existing operator will have to pay the market price determined @ the upcoming auction.

    Reply
  • Sudhakar November 4, 2012 9:57 am, 9:57 AM

    It occurred for me :

    I am from Tamilnadu circle. I am unable to make outgoing calls using Videocon SIM. Only incoming call and SMS and Outgoing SMS is working. I think Videocon is going to shutdown indecently unlike Uninor which intimated its customers well in advance and had quit in a decent manner.

    Reply
  • PD November 3, 2012 8:30 pm, 8:30 PM

    Unlike Uninor, Videocon has an existing viable business set-up (of course not telecom) and therefore should have competed differently ! But our Indian mentality is to make “hay” as fast as possible, so can’t even wait for “Sun shine” ! Greediness pays, take the case of BPL, the erstwhile pioneer- now LOOPing around groping and gasping!

    Reply
  • Kingston November 3, 2012 8:10 pm, 8:10 PM

    Its the time remember exminister RAJA. Kapil sibal is totally supporting incumbent players. He is not ready to implement roaming free. He is a waste fellow. This congrass Government is not consumer friendly. In tamilnadu airtel charging 69rs for just all local cals only 30p/min for 30 days. Kabil sibal is not ready to take any action against this call charges. He is favore of incumbent players. Next parliment election must throw out this company friendly congress government.

    Reply
  • Aalaap Ghag November 3, 2012 7:20 pm, 7:20 PM

    What about GSM service ? they will out or continue ?? any update ?

    Reply
  • Esmail November 3, 2012 2:52 pm, 2:52 PM

    Does anyone remember, the time when telecom talk had pulled the April fool prank of saying they were up for sale, there were many proposals to buy the domain name, one of them was from a representative of Verizon, who said the company was planning to bid for licences for starting operations in India. I was hoping to see Verizon as a strong contend or for the 800 MHz spectrum auctions, but foreign investors are maintaining safe distance from the uncertainity of Indian telecom industry.

    Reply
  • AJAY DUTTA November 3, 2012 2:14 pm, 2:14 PM

    whatever might be the high voltage action-drama unfolding in coming days… we the aam-aadmi (general customers) want only best service at a very low price… we are concerned with the quality and the price they usually charged from us…

    Reply
  • Raghu November 3, 2012 1:57 pm, 1:57 PM

    @Saurabh
    Yes u are right.MTS fate will be decided by the court.

    Reply
  • Saurabh November 3, 2012 1:05 pm, 1:05 PM

    @Raghu,

    Yes. Tata Docomo can easily get back their CDMA licenses for 3 circles now as Videocon has pulled themselves out of the race which was the only one to give competition and it’s not known until now whether those 3 was also on Videocon radar. So Tata have to have get their licenses back in all situations. But the best thing now is they can get spectrum at reserved price. As per auction rules, if there is negative demand for a circle there will be no increment in the price. Now with just 1 player, no price will go up.

    So, for 800MHz spectrum band, auction is surely going to fail.

    Reply
  • Rajiv November 3, 2012 12:51 pm, 12:51 PM

    For long, the Code Division Multiple Access (CDMA) industry has been panned in India for its myriad problems such as poor connectivity, issues with international roaming and lower revenues.

    Reply
  • drkavint November 3, 2012 12:18 pm, 12:18 PM

    its very clear…cdma spectrum will go unutilised…reliance also away from it indicates how much the spectrum will be profit… no takers..
    back to square one.. even videocon not willing to contest . u cannot expect foreign investments any more seeing fate of uninor mts none will bid.. i think airtel and vodafone will be gainers and will increase tariff..
    welcome 2013 for call rate rs.2/minute..30p rate cutter will cost 100/month…
    reliance will not invest in 4g.. will profit from minimal customers with huge price..
    4g players will cover enmass with signal due to trai ruling, but plans will be too costly such that only IT can afford..
    good opertunity for gsm guys….

    Reply
  • Raghu November 3, 2012 11:16 am, 11:16 AM

    @Saurabh
    yes excellent decision by Videocon.But what will happen to MTS. Will MTS get back the license? it is clear that Tata will get back the 3 circles CDMA spectrum back.

    Reply
  • Saurabh November 3, 2012 11:13 am, 11:13 AM

    All in all Goverment is on back foot right now and their moves of not keeping base price low for inefficient 1800MHz band and also not putting all the spectrum vacated after cancellation of licenses for creating artificial scarcity in hope of generating bigger revenues through aggressive bidding are telling upon themselves now. This is what happens when you over price a thing or commodity in India. Very few takers or I should say no takers now. They just set aside telecom operators’s view and thought of themselves only and to reduce fiscal deficit which is always on rise due to their own wrong spendings and corruption. Rs.14K crores is illogical in all ways. Even if they had priced much efficient 900MHz spectrum at this amount of 14k crores, it wouldn’t have had made any sense.

    The base price for 2100MHz band was set at 3500 crores only. Why didn’t they kept base price for 1800MHz band double that price? Why 4 times? As I’ve always said, this price is more like a final price in itself. So you can’t expect more from auction.

    Mr. Kapil Sibbal’s hope of auction reaching 20K crores is also faded now. When he took over the charge of Telecom Ministry, he said that his Ministry will turnaround BSNL to make it profitable in next 100 days. Actually he meant 100 months or even years.

    Planning Commission was always of the view that the auction price for 1800MHz is too high but it was also kept aside by craps.

    Reply
  • Saurabh November 3, 2012 10:49 am, 10:49 AM

    Good decision by VTL. Even they come to know that CDMA can’t provide a good business opportunity in India and it’s GSM which is consumers’ favorite here. CDMA here is just like Linux, though secure and good yet few takers. I’ve shifted to Linux now and will shift to CDMA one day but as a secondary choice only.

    With this, I’ve been also proven wrong regarding my thought of Videocon bidding for CDMA spectrum on MTS behalf.

    Lets see which circles they choose for GSM. They may also ask DoT to keep this bank guarantee of Rs.220 crores and adjust it against GSM application so that they can go for more GSM circles. If this happens, their total Earnest Money Deposit for GSM application will be Rs.868 crores (648+220).

    Few days back TDSAT also ordered DoT to return Videocon Tele the bank guarantees they deposited in 2008 for licenses which were quashed by Supreme Court.

    Reply
  • Arif November 3, 2012 7:59 am, 7:59 AM

    Videocon’s refill is not available, dealer said Videocon is no more now. One guy said Reliance will take over.

    Reply
  • Tharun George November 3, 2012 7:28 am, 7:28 AM

    Videcon stopped in kerala a long time back. No signal for almost a year.

    So TATA will take their 3 CDMA spectrum back. So what will Gov do with rest of CDMA spectrum? Give them back free to MTS?

    Reply
  • Esmail November 3, 2012 12:31 am, 12:31 AM

    Clear indication that MTS will regain all its lost licences without having to participate in the auctions, Russian government pressure and threat of dragging to international arbitration worked for MTS.

    Reply
  • jitu shah November 2, 2012 11:16 pm, 11:16 PM

    But videocon has stopped its business in mumbai circle. So where will it sustain spending 250 cr of white money from white goods?

    Reply

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