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| DoT asks 3G auctioneer to furnish details on ties with Malaysia unit |
| Mansi Taneja / New Delhi Dec 25, 2009, 00:12 IST |
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The Department of Telecommunications (DoT) has asked NM Rothschild (India), the e-auctioneer appointed by DoT to conduct 3G and WiMAX auctions, to furnish details about its relationship with Rothschild (Malaysia), including whether both have a common holding company/parent.
The issue is that NM Rothschild is advising mobile service provider Aircel to look for buyers for its tower business. Aircel owns about 15,000 towers. The deal is likely to be in the range of $1.5-1.8 billion. What has raised the issue of conflict of interest is that Malaysia’s Maxis Communications holds a stake of 74 per cent in Aircel and is also likely to bid in the 3G auction.
Aircel appointed Rothschild, Nomura and Standard Chartered to advise it on the tower business deal. American Tower Corporation, Bharti Infratel, GTL Infrastructure and Reliance Infratel are the possible bidders for Aircel’s tower business. According to media reports, GTL is close to inking the deal with Aircel.
DoT, which is now looking into the matter, has also asked NM Rothschild to incorporate a new ‘conflict of interest clause’ in the agreement between DoT and the e-auctioneer, a senior department official said.
This is the latest controversy in the much-hyped auction of third generation (3G) spectrum. Earlier, DoT and the Ministry of Defence had issues relating to vacation of spectrum, due to which the auction was delayed by about two years.
The 3G and Broadband Wireless Access (BWA) auction is slated to happen on January 14 next year. However, DoT has still not issued notice inviting applications (NIAs) for possible bidders, which might delay the whole auction process.
But, since DoT has maintained that enough 3G spectrum will be available by August 2010, the winners of the auction process can be awarded spectrum in their respective telecom circles simultaneously.
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