The loss making telecom service provider Tata Teleservices (Tata Docomo) has surrendered about 20 MHz of CDMA spectrum to the Department of Telecom (DoT).
The move will assist TTSL to improve the value of the company because CDMA user base is not growing significantly.
Industry observers feel that the surrendering of spectrum will be a good move before any plans for consolidation. According to earlier media reports, NTT Docomo, Japan’s leading telecom operator, may be considering to exit from its India mobile venture by selling its 26 percent stake in TTSL.
Times of India reported that Tata Teleservices has considered the move after India government slapped a one-time fee for airwave holding beyond 2.5 MHz in a telecom circle.
The weak financial position is forcing Tata Teleservices to give up spectrum. TTSL has reported a net loss of Rs 4,858 crore on operating income of Rs 10,799 crore during the last financial year.
TSTL informed DoT’s wireless planning & co-ordination wing about the development in the first week of this month and the spectrum vacation has been done in 14 circles.
Tata Teleservices, which has debt of more than Rs 23,000 crore, has completed the surrender of CDMA spectrum in all circles wherein it has made the decision to surrender.
The report said though TTSL had got a stay from Kolkata high court over the payment of one-time charge for airwaves beyond the 2.5 MHz threshold in CDMA band, the company had made it clear that it will go ahead with the surrender.
TTSL continues to retain a third carrier in Delhi and Mumbai telecom circles, which makes its spectrum holdings in the metros at 3.75 MHz. The company has already paid the first instalment towards the additional spectrum holding in Delhi and Mumbai, though its legal challenge to the government’s move is still before the Kolkata high court.
