Due to high reserve price fixed by the government, there was no significant competition at the auction table. Telenor, Videocon, Vodafone, Idea Cellular and Airtel were the only bidders.
Government had fixed around 8 times high reserve price for GSM spectrum and 11 times high price for CDMA spectrum compared to the amount on which companies were allocated pan-India permits till 2008.
Government is planning to auction unsold spectrum by March. If there is good response from the industry for the unsold spectrum, the Government can mobilize around Rs 20,000 crore.
Meanwhile, the Supreme Court said telecom operators, whose licences were cancelled by it but continued to operate due to delay on government’s part to hold fresh auction of 2G spectrum, might have to pay for using the radiowaves on the basis of current price.
A bench of Justice GS Singhvi and Justice KS Radhakrishnan said that it would consider asking the operators to pay for using spectrum as they continued to operate because of delay in auction by the Centre.
The court, however, did not pass any order and said that it would consider the issue at the next date of hearing.
The apex court had on February 2, while cancelling 122 2G licences, allowed them to run for four months after which the order was to become operative.
The date expired on May 2 but the apex court allowed the operators to continue providing services as the Centre failed to put the spectrum on auction which was done only on November 12.
