Idea calls for reduction in base prices to extend to recently sold spectrum

26 Nov 2012

Indian cellco Idea Cellular has made a request to the Supreme Court that any reduction in reserve price for the unsold spectrum be applicable to the winners of the recently concluded auction, reports the Business Line. Idea was one of the companies to have its licences quashed by the apex court in February and participated in the recent spectrum auction winning frequencies in eight circles. Having purchased spectrum at the higher price, Idea has argued that it wishes to ensure a level playing field by guaranteeing that no company will be put at a commercial disadvantage by the government’s handling of the 2G crisis. As previously reported by CommsUpdate, the auction fell flat, raising less than a quarter of the expected income from the sale and four of the most expensive areas – Delhi, Mumbai, Karnataka and Rajasthan – attracting no interest from bidders. The government has since begun looking into ways to dispose of the spectrum, including holding a second auction with a lower reserve price, altering the auction method, and permitting different financing solutions.