Spectrum: Tata Teleservices pulls out of auction

After Videocon walked out of the CDMA spectrum auction, it was the turn of Tata Teleservices to withdraw from the fray on Monday. With this, there won’t be any bidder for radiowaves in 800 Mhz band.

Sources in the Department of Telecom said that Tata Teleservices withdrew its application citing high cost of spectrum.

Videocon Group, which was the only other applicant for CDMA airwaves, withdrew its application on November 2.

The auction for spectrum in 800 Mhz band is slated to begin two days after the winners of 1800 Mhz band auction are declared. In 800 Mhz band, there is a shortage of spectrum and the government will auction 3 blocks 1.25 MHz each in 19 telecom circles. At the reserve price, each block of 800 Mhz band will cost Rs 4,550 crore which is 1.3 times the price of airwave frequencies in 1800 Mhz band, used for providing GSM services.

Earlier this year, the Supreme Court had cancelled 122 permits, including that of Tata Teleservices, in three circles.