Telecom companies line up for spectrum

Bharti Airtel and Vodafone, Norwegian telecom major Telenor, Videocon, Idea Cellular and Tata Tele, four companies that had seen their licenses among 122 cancelled by the Supreme Court, will bid for 2G spectrum in the fresh round of bidding scheduled for next month.

While Reliance Industries of Mukesh Ambani was widely expected to participate in the auctions, the group chose to stay away, even as his younger brother Anil's Reliance Communication let pass the fresh round of bidding.

The only surprise move apart from Ambani senior, came from Sistema Shyam that said it would not participate in the bid process, a move that has left several of its customers worried. The absence of Sistema Shyam's absence means there would be no bids for CDMA frequency band.

Although the verdict of the court left no impact on Bharti Airtel and Vodafone, the two companies are said to be trying to get additional spectrum. In a statement, even as Vodafone did not comment on the circles it wanted to bid for, it confirmed having filed its application.

According to analysts, the response to the spectrum sale this time around seems to be somewhat muted as against the 2008 first-come-first-served process under former telecom minister A Raja.

Though nine companies had got the permit then,  these were cancelled earlier this year by the Supreme Court, which ordered the government to sell airwaves and licences through the auction route.