CDMA spectrum: Videocon pulls out of auction

Videocon, which has applied for GSM, as well as CDMA, spectrum in the coming 2G telecom spectrum auctions, has now withdrawn its bid for CDMA spectrum. The company was named a pre-qualifier in the bidding process on October 29.

In 2008, the company had received pan-India 2G spectrum for Rs 1,658 crore. With Videocon’s withdrawal, Tata Teleservices is the only operator to bid for CDMA auction. The 2G spectrum auction is slated for November 12.

Despite repeated calls, Videocon Chairman V N Dhoot could not be reached for comments.

Videocon had submitted Rs 220 crore as earnest money deposit, which could have seen it take seven to eight category B and C circles. Tata has submitted Rs 22.5 crore, which would match the number of points it requires to win the three category C circles cancelled by the Supreme Court. MTS, another CDMA operator, has stayed away from the bidding and has approached the Supreme Court, challenging the cancellation of its licences.

On November 6, the Department of Telecommunications would announce the final list of bidders and on November 7 and 8, a mock auction would be held.

Initially, five operators — Bharti Airtel, Vodafone, Idea Cellular, Telewings and Videocon — had applied for GSM spectrum auction, while two operators (Tata Teleservices and Videocon) had applied for CDMA spectrum. Tata Teleservices has bid for only 3.24 per cent of its bidding potential.