SC approves SSTL operation in eight circles

The Supreme Court today cleared the way for Sistema Shyam (SSTL) to provide its services in eight telecom circles in which it was the lone bidder for the 800 MHz spectrum.

"The applicant (SSTL) is entitled to continue services in eight circles," a bench comprising justices G S Singhvi and K S Radhakrishnan said.

SSTL's counsel Vikas Singh said there was no other bidder for the CDMA service and the company participated in the second round of fresh auction after the Department of Telecommunication reduced the reserved price.

Senior advocate P P Rao also informed the court that the auction has concluded and SSTL made the bid for eight circles and there was no competition.

Sistema Shyam (SSTL) was the lone bidder in today's auction and it bid Rs 3,639 crore for eight circles in the 800 MHz spectrum range.

The auction for 2G spectrum for GSM players held in November last year had fetched the government Rs 9,407 crore.

SSTL said it won spectrum in 800 MHz band in Delhi, Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) and West Bengal.

With SSTL bidding for only eight circles, it will have to close operations in Mumbai, Maharashtra and UP East, where the company has over 15 lakh subscribers.

The company is a joint venture of Russia's telecom giant Sistema and India's Shyam Teleservices.

The apex court on February 2, 2012 had cancelled SSTL's 21 out of 22 licences for the 2G spectrum.