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EGoM's decision to defer CDMA spectrum auction may benefit Sistema

Source : BUSINESS_STANDARD
Last Updated: Sat, Dec 08, 2012 18:50 hrs

pTroubled CDMA operator Sistema Shyam Teleservices is likely to benefit from the deferment of decision on the 800 MHz spectrum auction by the Empowered Group of Ministers EGoM on telecomppSistema Shyam Teleservices is set to lose all its operating permits except in Rajasthan in January as a result of a February Supreme Court order cancelling 122 telecom licences for alleged corruption in spectrum allocation According to a top official of the Department of Telecommunications DoT the government would not be able to conduct the auction for the 800 MHz band of spectrum the band used by the CDMA operators before January 18 when Sistema would lose operating permitsppThis would mean the government may have to give an extension to the Russian operator according to an industry insider But for that Sistema Shyam Teleservices need to appeal before the Supreme Court for an extension the source addedppFollowing the cancellation of its licence the company had filed a curative petition before the Supreme Court seeking restoration of its licences in May However it is yet to be listed for hearingppEarlier this week Vsevolod Rozanov president and chief executive officer Sistema Shyam Teleservices said that the company is currently working on an &ldquoevery day every week basis&rdquopp&ldquoThere is a Plan A but no Plan B We came here on the government&rsquos invitation We need to understand what is the way out At this stage we see there is sympathy that we can continue we need to see how&rdquo he had saidppSistema Shyam which operates under the MTS brand in India did not participate in the recent auction But the company would &ldquovery seriously&rdquo consider participating in the next auction if the government decides to conduct another auction at the &ldquoreasonable&rdquo 2008 reserve price Rozanov saidppThe government has already said that it would announce fresh dates for the 800 MHz CDMA spectrum auction by March 31 2013 During the November auction it failed to get bidders for the 800 MHz airwaves due to high reserve pricep


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