Decision on 800mhz hanging: Why will Sistema Shyam benefit?

The Empowered group of Ministers (EGoM) on 2G spectrum has not taken any final decision on 800 Mhz band (popularly referred to as CDMA). This may turn out to be a blessing in disguise for Sistema Shyam, reports CNBC-TV18’s Malvika Jain. The licenses of the telecom operator are going to stand cancelled January 13.

According to the DoT sources it is not going to be possible for them to conduct auctions by that time. So in all likelihood a further extension maybe given to Sistema Shyam, but of course it will have to go again to the Supreme Court.

After a tepid response to the 2G auction last month, the spectrum has decided to slash the reserve price of spectrum for the second-round of the auctions. The four circles that did not see any bidding the price of spectrum will be slashed by 30%.

The government will conduct fresh auctions in four circles for 1800 mhz band while three circles (Mumbai, Kolkata and Delhi) will see auction for 900 mhz band.