NEW DELHI: Telecom companies will not be allowed to withdraw from the spectrum auctions once they have made their bids even if they are not getting contiguous 5MHz spectrum, which is crucial to offer data and other high-technology services.
A top government source said DoT has come to this conclusion to ensure that serious bidders participate in the auctions and that the entire spectrum gets sold. "If we get bids and there are no winners due to withdrawals, the spectrum will remain unsold. We do not want this situation and thus will not allow withdrawals once bids come in," the source said.
However, the source said a "priority system" may be established to give preference for contiguous spectrum to those telcos who bid aggressively. Analysts feel that non-availability of contiguous spectrum may be a dampener to aggressive bids as spec trum split in two or three chunks will not be very apt for data and other high-end services, though voice services can be offered. The industry's focus has of late been shifting to the data side and a non-contiguous spectrum may not be lucrative for telcos.
The source also said that DoT is planning to release more spectrum in the 1,800 MHz band for auctions in January. While the initial plan was to sell 298 MHz of spectrum, DoT now feels that more can be sold. A proposal for this will be made to the Empowered Group of Ministers (EGoM) that meets in the first week of December.
"The extra spectrum was earlier being reserved for re-farming in the 1,800 MHz band in many circles. We feel that this should also be put up for sale now," the source said, adding this decision was taken by the inter-ministerial Telecom Commission. However, the source did not reveal how much additional spectrum can be vacated for sale in the 1800 MHz band.
via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGMcdtm-S6HhrcB89yycRiKgUJpRQ&url=http://timesofindia.indiatimes.com/business/india-business/Telcos-cant-pull-out-from-spectrum-auction-after-bid/articleshow/26599234.cms
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