The Telegraph
Saturday , November 3 , 2012
Since 1st March, 1999
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Videocon partially pulls out of auction

New Delhi, Nov. 2 (PTI): Telecom operator Videocon is believed to have withdrawn its application to bid for airwaves (spectrum) in the 800 megahertz (MHz) band, which is used for CDMA operations.        

“Videocon has applied for participating in the auction of 1800MHz and 800MHz bands but it has withdrawn application submitted for 800MHz band,” government sources said. This information, however, could not be independently verified with Videocon. Repeated attempts to reach the company spokesperson failed.

Videocon’s licences were among those cancelled by the Supreme Court in February. Companies that lost their licences are required to buy spectrum through auction if they wish to continue to remain in the telecom business, according to the apex court’s order. The auction of spectrum in the 1,800MHz band will start from November 12.

The auction of spectrum in the 800MHz band is slated to begin two days after the winners of the 1800MHz band are declared. The Supreme Court has ruled that the entire exercise must be over by January 11, 2013.       

In the 800MHz band, there is a shortage of spectrum, and the government will auction three blocks of 1.25MHz each in 19 circles.        

At the reserve price, each block of 800MHz band will cost Rs 4,550 crore, which is 1.3 times the cost of frequencies in the 1800MHz band, used for providing GSM services.