Press Esc to close
Wednesday 24 August 2016
News updated at 9:38 PM IST
Weather
Max: 30.6°C
Min : 20.9°C
In Bengaluru
Sunny day

High price main reason behind 2G auction failure: Industry

New Delhi, Nov 14, 2012, DHNS:

Holding the high reserve price mainly responsible for poor response from telecom companies in the 2G spectrum auction, the industry said bidding has concluded on the exact note as predicted.

“First and foremost among the many causes, is the clear recognition that an artificially high reserve price that bore no congruence to market realities was the key reason for the failure,” GSM industry body COAI said in a statement.

Besides, majority of the bidders are actually operators who had lost their licences and were compelled to participate in the auctions despite high price and limited availability, in order to sustain their customers, businesses and protect years of investments, it said.

“Finally, the limiting of spectrum available for auction, which contrary to the Supreme Court ruling (to auction the entire spectrum related to the quashing of the impugned licences), added to the sense of uncertainty and fear of irrational bidding for many potential bidders,” COAI said.

“The result of the auction clearly indicates that the reserve price was completely off the mark, with interested operators also not pitching for the circles that they had committed to participate publically,” said Prashant Singhal, partner in member firm of Ernst & Young Global. Vodafone India, which won bids in 14 circles, said it had participated in the 2G auction to secure additional spectrum.

“Vodafone India has always maintained that auctions are the best and the only transparent method for allocation of spectrum. Our decision to participate in the 2G auction was to secure additional spectrum in many circles where we have not received any new 2G spectrum since 2008. Our customers grew in that period from 60 million to 153 million,” Vodafone India said in a statement.


Go to Top

Photo Gallery
Bollywood actress Sonakshi Sinha at a press conference to promote her upcoming film in Jaipur...

Bollywood actress Sonakshi Sinha at a press conference to promote her upcoming film in Jaipur...

A view of submerged temples in the flood waters of River Yamuna in Allahabad...

A view of submerged temples in the flood waters of River Yamuna in Allahabad...

Nuns distribute relief material to flood hit peoples at a camp in Allahabad...

Nuns distribute relief material to flood hit peoples at a camp in Allahabad...

A sand art of Lord Krishna made by Sand Artist Sudarshan Patnaik ahead of Krishna Janmashtami...

A sand art of Lord Krishna made by Sand Artist Sudarshan Patnaik ahead of Krishna Janmashtami...

A child dresses as lord Krishna for a school function ahead of Janmashtami, in Bikaner...

A child dresses as lord Krishna for a school function ahead of Janmashtami, in Bikaner...

The launch of Entrepreneurship Summit at IT Decode Park in Hyderabad...

The launch of Entrepreneurship Summit at IT Decode Park in Hyderabad...

Horses undergoing exercise and training by handlers at Race Course in Bengaluru...

Horses undergoing exercise and training by handlers at Race Course in Bengaluru...

A child plays in front of idols of Lord Ganesha ahead of Ganesh festival ...

A child plays in front of idols of Lord Ganesha ahead of Ganesh festival ...

Hyundai Motors India unveils the all new Elantra...

Hyundai Motors India unveils the all new Elantra...

Priests perform Gaja Pooja in Manakula Vinayagar temple, dedicated to the god Ganesha...

Priests perform Gaja Pooja in Manakula Vinayagar temple, dedicated to the god Ganesha...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523