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EGoM's decision to defer CDMA spectrum auction to benefit Sistema

Sistema Shyam Teleservices will lose all its operating permits, expect Rajasthan, in Jan

Sounak Mitra  |  New Delhi 

Troubled operator Shyam Teleservices is likely to be beneficial with the (EGoM) on telecom deferring decision on the 800 MHz spectrum auction citing that it would require further discussion.

Shyam Teleservices, which will lose all its operating permits, expect Rajasthan, in January as a result of a February order by the Supreme Court cancelling 122 telecom licences for alleged corruption in spectrum allocation.

According to a top official at the Department of Telecommunications (DoT), the government would not be able to conduct an auction for the 800 MHz band of spectrum that is used by the operators before January 18, when would lose operating permits.

This means, the government would have to give an extension to the Russian operator, according to an industry insider. But for that, Sistema Shyam Teleservices would require to appeal before the Supreme Court for an extension.

Following the licence cancellation in February, the company had filed a curative petition before the Supreme Court seeking restoration of its licences in May. But, it is yet to be listed for hearing. Though the curative petition was filed in May, it is yet to be listed for hearing.

Earlier this week, Vsevolod Rozanov, president and CEO, Sistema Shyam Teleservices had said that the company is currently working on a “every day, every week basis”.

“There is a Plan A, but no Plan B. We came here on government’s invitation. We need to understand what is the way out. At this stage, we see there is sympathy that we can continue, we need to see how,” he had said.

Sistema Shyam that operates under MTS brand did not participate in the recent auction. But, the company would “very seriously” consider participating in the next auction, if the government decides to conduct another auction at a reasonable price at the level of 2008 reserve price, Rozanov had said.

The government has already said that it would put 800 MHz spectrum on a fresh auction by March 31, 2013. It failed to get bidders for the 800 MHz airwaves during November auction because of high reserve price.


First Published: Sat, December 08 2012. 13:34 IST