The Government will get Rs 3,639 crore from the auction of 800 MHz CDMA spectrum that concluded today.
Sistema Shyam Teleservices (SSTL), the lone bidder in the 800 MHz spectrum band today, has bid for only eight circles. But, the company had submitted application for 11 telecom circles before the auction.
SSTL has not bid for Mumbai, Maharashtra and Uttar Pradesh (East) which accounts for 35.28 per cent of the base price of the 11 telecom circles that the company had intended to bid. The reserve price of Mumbai circle alone is about 23.52 per cent of the reserve price of the 11 circles. These three circles accounts for about 13 per cent of the company's total subscriber base of 12.1 million at present.
SSTL has won by 3.75 MHz of spectrum in Delhi, Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) & West Bengal in the auction that ended today.
As the company would need to pay 25 per cent of the total bidding amount as the first installment, if it takes deferred payment mode, it would need to pay just Rs 909.75 crore this year. However, this amount would be adjusted with Rs 1,626 crore of licence fee that the company had paid earlier for the licences that were quashed by the Supreme Court oder that cancelled 122 operating permits in February 2012.