Sistema Shyam TeleServices Ltd (SSTL) has criticized government’s move to set the price for 800 Mhz CDMA spectrum 1.3 times more than the GSM 1800 Mhz spectrum.
“Given the realistic sectoral environment and market dynamics, I believe that the reserve price for spectrum as approved by the cabinet is excessively high”, said Vsevolod Rozanov, President and CEO, Sistema Shyam TeleServices in a statement.
The spectrum auction is crucial for companies such as Sistema Shyam, Uninor and Videocon to win the auction for being able to continue the operations.
SSTL, where Russia''s conglomerate Sistema holds a 53 per cent stake, lost 21 licenses following Supreme Court’s February 5 verdict canceling all the 122 spectrum licences allotted during the tenure of former telecom minister A Raja.
“It is significant to note that the GSM spectrum being put up for auction is liberalized whereas the 800 Mhz CDMA spectrum continues to be non liberalized”, he added
He said that the Supreme Court in its 2nd February 2012 order had directed that true market price of the spectrum should be discovered through auction. “Hence, the reserve price for spectrum should be Rs 1658 crores and any change in this pricing contradicts the spirit of the same order.”
He said that Sistema Shyam TeleServices Ltd(SSTL) has consistently maintained that being a pure play CDMA operator, its legal case is significantly different compared to other mobile operators.
“To protect the interest of more than 16 million customers, 3500 employees, universe of 300,000 retailers and investments of over USD 3.1 billion, SSTL has filed a curative petition before the Supreme Court.
He expressed hope that the apex court will look into the merits of SSTL's case and will company justice.