Sistema Shyam Teleservices (SSTL) unhappy with the recommended reserve price of 800 MHz spectrum

By December 10th, 2014 AT 4:16 PM

Sistema Shyam Teleservices (SSTL) is disappointed with the recommended reserve price of 800 Mhz spectrum as it is not in sync with the business and ecosystem realities. SSTL is the lone operator that uses CDMA technology and has asked the government to rethink on the base price for 800MHz band spectrum. It has suggested that the reserve price should be at par with the market discovered price of 1800MHz band.

MTS India - SSTL

SSTL in a statement said, at such a price one would not find any takers for 800MHz spectrum in the 2015 auctions, given that this price has also been previously tested in the market, way back in November 2012. It is not in sync with the business and ecosystem realities. The proposed pricing of Rs 3,646 crore per MHz is way out of line and does not merit a strong business case for buying spectrum in the said band.

The SSTL further added that, if such a pricing framework is implemented then it would be seen as going against the spirit of Prime Minister’s vision for Digital India and broadband for all.

The company is saying this, because of the highest decision-making body in telecom, Telecom Commission (TC) has fixed higher base price of Rs 3,646 crore per MHz for the auction of 800 MHz spectrum, the auctions for which is slated for February next year.

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