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2G Scam: Supreme Court Quashes 122 Licences issued in 2008

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becoz the profit they saw from 800mhz auction they will gain nothing :P

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Tata took a very clever step that probably will change many things.

The position of MTS is now very strong. With Videocon not in the fray and Tata withdrawing from it for its 3 quashed licenses, Govt will be thrown in a catch 22 position. It is now to be seen what the apex court will decide. How the vacant CDMA spectrum will be used and by whom is the biggest question now.

Kudos to Tata for making this fray dramatic :dance:

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^^^^^

Why???

well your question was answered even before I read it. :hypocrite:

Its apparent that the auction of cdma will not be done,so Mts will make a strong point that cdma and gsm license cancellation should be viewed differently.By doing this if they get back license then Tata will also get it back claiming the same reason.

In the 2nd scenario if Mts does not get back license Goi will get nothing from cdma.

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I am also certain now that position of MTS has become very strong and they might get their licences restored.

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:previous::previous::previous:

Good news

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This time the spectrum auction turns out to be a big flop. The much talked about 2G mobile phone spectrum auction ended in a damp squib on Wednesday with half of the airwaves on offer remaining unsold and government getting just about one-third of the targeted revenue.

The government received bids worth "much-less" than Rs 10,000 crore in an auction that ended in two days, a far cry from the 35-day bidding for the 3G spectrum in 2010 that got Rs 67,719 crore.

The government was targeting Rs 28,000 crore from the sale of 2G spectrum in the GSM band.

Videocon and !dea won spectrum in 7 circles while Telenor got spectrum in 4 circles. AirTel and Vodafone won spectrum in one circle each.

None of the five companies in fray bid for a pan-India spectrum for which the reserve price was set at Rs 14,000 crore for 5 Mhz of airwaves.

The scant interest in the 2G auction was attributed to high base price.

The government had put on auction a substantial part of the spectrum that was freed from Supreme Court in February this year cancelling 122 mobile permits issued by the then Telecom minister A Raja to nine telecom players in 2008.

The comptroller and auditor general (CAG) had in 2010 had said that the decision to give away spectrum at rates fixed in 2001 could have resulted in a presumptive loss of Rs 1.76 lakh crore to the exchequer taking the price garnered in the 3G auction as the benchmark.

The government thereafter fixed the base rate for 2G auction at almost equivalent to the third-generation (3G) auction price.

Further, as the government has promised to refund the license free paid in 2008, the net gain to the exchequer may be almost nil.

The tepid response to the auction may mean that the government will find it difficult to meet the revised fiscal deficit target of 5.3 per cent of GDP.

Sources said metro cities of Delhi and Mumbai, which accounted for 40 per cent of the base price of Rs 14,000 crore for 5 MHz of 2G spectrum, drew no bids at all.

Bids in most of the circles were around the base price with the exception of Uttar Pradesh East and West besides Bihar. In fact, the auction got extended into the second day only on back of interest in Bihar circle.

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i think the reserve price were kept high by Mr Sibal and team so that there would be less bidding and so that his zero loss theory is proved.

Now GOI will get around 10000crore from this auction (that too in installments) also GOI has to return almost the same amount to the operators whose licences got quashed (2008 spectrum give-away kaand).

Basically i think its a zero loss (and zero gain) for the govt as well.

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Reserve price was kept too high.

flop show of this auction might have following impacts

1. MTS:- Strong case of MTS to retain its CDMA spectrum

2. Tata:- Strong case to retain CDMA spectrum and getting GSM spectrum in Delhi :thumbup:

3. Positive for all telcos:- GOI will not be able to slap them with one time fee for spectrum in circles where no bids were received like Delhi/Mumbai, same with CDMA spectrum

Edited by SUDYEcaZ

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This is All Pre planed auction by GOI, Base price is very high I am seen all discation in ndtv prime time. If Gov. Auction base price is low then GOI receive more than 1lac cr.

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So the drama was well played... All actors have done their part very well...

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IMHO,so far what happened is gud for atleast customers. operators will definitly hike the call charges, if higher spectrum charges paid . Also, nothing will going to happen in india with the big amount get from auction, since the biggest correpted people are ruling

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Can someone pls. explain how MTS and TATA retain theirs CDMA spectrum after auction ?

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Can someone pls. explain how MTS and TATA retain theirs CDMA spectrum after auction ?

As of today they do not retain the same.

But as there was no taker for CDMA spectrum in the auction. Government/MTS can very well go to court and have the first right on the spectrum. based on the market determined price.

curative petition of Sistema is still pending,DOT is also going to support the same.

And their is a very chances that court might restore the CDMA spectrum

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Mts will stay here because Russian government want it to stay.

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Since the Drama is going well as preplanned, I too now believe MTS is here to stay... But the next fight scene after giving them license will be the climax...

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If you analyse the entire "drama", govt has played very smartly. it has kept the reserve price too high so that no new co can think of participating. MTS filed a petition and now with almost no bid, govt is targeting CAG and opposition. Congress is master manipulator and with this, it is trying to prove that govt was correct by not auctioning spectrum then.

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Also because of these unstable market conditions along with corruption in India many telecom companies and banks are hesitant to invest in Indian telecom.Someone rightly said this is the first govt which is celebrating its own defeat(i.e. Low auction,which will add up to the fiscal deficit)!

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:previous:

I heard that the supreme court ordered the government to rise the reserve price as per CAG reports.

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Uninor is asking customers to port out as services will be stopped from 18th January 2018 in West Bengal & Kolkata circles.

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