Russian conglomerate Sistema Shyam Teleservices (SSTL) which operates under the brand name MTS in India appreciates Cabinet’s decision on the reduction of CDMA reserve price to 50 percent.
“The decision by the Cabinet to reduce the CDMA reserve price by 50% clearly reflects the growing realization that demand for 800Mhz is very limited. The decision taken is a step in the right direction,” stated SSTL spokesperson. The spokesperson also added, “However, as per ground realities one would have expected much greater reduction.”
The cabinet has taken a decision to reduce the CDMA reserve price by 50%, today. The starting price would be Rs 9,100 crore instead of Rs 18,200 crore. The auctions in all three spectrum bands – 900 MHz, 1800 MHz and 800 MHz- are set to start from March 11 to be completed by end of the same month. India is betting big on the revenue from spectrum auction to plug its fiscal deficit as the last auction that took place in November just garnered revenues of less than Rs 10,000 crore instead of Rs 40,000 crore as projected.
There were no takers for CDMA spectrum in the last auction held in november 2012, while only part of the airwaves for GSM services were sold with the industry criticising the reserve price as too high.