50% cut in reserve price of CDMA spectrum
Government today approved 50 per cent cut in the reserve price of CDMA spectrum for the auction, but companies said that there might not be any taker in the proposed auction as they feel even the reduced rates are still high.
"The Cabinet has approved 50 per cent reduction in 800 Mhz band (reserve) price which was fixed earlier at Rs 18,200 crore for 5 Mhz," Telecom Minister Kapil Sibal said.
With today's reduction in price, existing CDMA players will have to pay one-time spectrum fee on the revised base price.
"It has been decided that existing CDMA operators holding spectrum beyond 2.5 Mhz will be charged at the revised reserve price, effecting from January 1, 2013, till such time as auction determined price becomes available," Telecom Secretary R Chandrashekhar saod.
However, industry body representing CDMA players, AUSPI, said there will not be any bidder for the 800 Mhz spectrum band even at reduced price.
"50 per cent reduction is not adequate. We believe that even at 50 per cent reduction ... I will not be surprised if there are no takers," AUSPI Secretary General Ashok Sud said.
The decision "reflects the growing realisation that demand for 800Mhz is very limited. The decision taken is a step in the right direction. However, as per ground realities one would have expected much greater reduction," CDMA operator Sistema Shyam Teleservices, whose 21 licences has been cancelled by the Supreme Court, said.
GSM players body COAI said that the decision will lead to non-level playing field in the sector and
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