Telenor Wants 50% Price Cut on Spectrum, Otherwise not Bidding for Mumbai

By January 31st, 2013 AT 10:58 AM

Norway’s Telenor group, which operates the Uninor brand in India, said it will not be able bid for spectrum in Mumbai circle, unless the reserve price for 1800 Mhz spectrum is slashed by at least 50 per cent.

Telenor Mumbai Bidding

Telenor Group wishes to clarify that a reserve price for Mumbai that is not at least 50% lower than in the previous round will compel Telenor Group to stay out of the auction process and Uninor to exit the Mumbai circle, it said in a statement.

“We now look to the Department of Telecommunications (DoT) and the Supreme Court for an intervention that ensures that the second round of auctions does not also fail and spectrum being a public resource is put to public use. Such an intervention is the only way to ensure a successful auction – which means wide participation, all spectrum sold, healthy bidding at possibly higher than reserve price. We are also concerned by the differential treatment between 800 MHz CDMA spectrum and 1800 MHz GSM spectrum. Considering that an unrealistic reserve price caused auctions to fail both of these bands in these circles, it is difficult to understand why the right decision of 50 per cent reduction is being taken only for CDMA operators,” it said.

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anonymousSaurabhArup GhoshVATSAKaushik Roy Recent comment authors
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Saurabh
Saurabh

I don’t know when people commenting here themselves know the AVoId group is looting customers then why the hell they are the leaders? The simple reason is, they’ve better coverage than those providing cheap services. Take an example- Aircel and Videocon started their services in Haryana in 2010 and even after offering dirt cheap tariffs in both voice and data, they were never able to cross a million subscribers mark in more than 2 years. Videocon does crossed but it was short-lived. Whenever I asked people using either of the AVoId group that why don’t they shift to cheaper options… Read more »

anonymous
anonymous

Actually , the avoid group got the first mover advantage long back ..when they the initial price to Rs8 /min they were forced to bring it down due to entry of reliance CDMA.. and this time too the coverage issue with new occupant got solution in CDMA.. which can maintain its longer coverage due to low frequency band and less number of tower reducing the input set up price benefiting the customer ,add to it the political lobbying and you have MTS

Arup Ghosh
Arup Ghosh

With the shutting down of several brands the market will be in favor of The triband series and they will loot customers.

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