Spectrum allocation should be through auctions: Shiv Sena

Prime Minister’s has flurry of letters on this entire controversy, some backing the GSM side and some backing the CDMA side and the Shiv Sena seems to be backing an auction. They are saying that an auction is the most transparent way of allocating spectrum considering the huge controversy that has happened with regards to this revised spectrum allocation criteria. So, they are saying that 40,000 crore is how much the exchequer stands to gain, if it goes in for an auction.

So, they have asked the Prime Minister to intervene in the matter. Manohar Joshi and Anant Gite, both very senior Shiv Sena leaders, have written the letter. There is also other letter which is letter written by the CEO of Tamasek Holdings. Tamasek ofcourse is invested in Bharti Airtel, both through its direct stake in the company and through its stake in SingTel. It has a majority stake in SingTel and SingTel ofcourse has a 30% stake in Bharti Airtel Limited.

So, Tamasek says that they are worried and have expressed concerns with the new norms for spectrum allocation. They have asked the Prime Minister to invite regulators from across the world to get an opinion from regulators across the world, on how really they go about spectrum allocation and that India would be best severe to adopt some of the global practices.

“Some foreign investors obviously are worried since foreign investment has been the key issue in the development of telecom sector. It is quite obvious that the foreign investors would be worried” said Sunil Mittal, CMD, Bharti Airtel

On the issue of auctions, telecom Minister Raja has made it very clear that he is personally in favour of an auction but he can’t go in for an auction because of the fact that the entire problem could get entangled in a legal mess. There could be serious legal implications for a move to auction.

A political twist to the entire battle, Shiv Sena is the first political party to make it stand very clear on this spectrum issue. The Congress has been very silent, even though the commerce minister Kamal Nath writing to the Prime Minister expressing concern on some of the developments on this spectrum issue.

Thus it puts pressure on the Prime Ministers office to really look at this entire issue and see if there is a need to constitute a group of ministers to evolve some kind of consensus on this issue.