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India to Lower Reserve Fee for Second CDMA Spectrum Auction
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India's second attempt to auction off its CDMA radio spectrum will take place in March as planned, as soon as the government settles on a new lower reserve price for the radio spectrum.
All the potential bidders pulled out of last years auction claiming that the reserve price had been set at too high a level. Licenses offering 5Mhz of 800Mhz spectrum covering the entire of India would have cost RS 14,000 crore (US$2.5 billion) - about 1.3 higher than the cost of GSM1800 spectrum licenses.
It is expected that the new auction will see the reserve price cut by 30-50 percent to attract bidders.
"All auction will be held in March," Telecom Minister Kapil Sibal said after the EGoM meet here. On CDMA auction, he said the bidding for the 800 MHz band will take place in all the circles.
The CDMA licences of Sistema Shyam Teleservices (MTS) in 21 telecom circles and Tata Teleservices' in 3 circles were cancelled by the Supreme Court last year. MTS has threatened legal action to recover its licenses which expire in the middle of this month.
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