The government’s estimate of raising Rs 40,000 crore from auction of spectrum in the next financial year could be surpassed if the department of telecommunications (DoT) sticks to its auction deadline. And, if incumbent operators do not go to court.
The auction of BWA spectrum is expected to happen by December, while auction of 2G spectrum after the cancellation of licences, by a Supreme Court order, is likely to end by early-March 2013. However, even a slight delay would upset the plans of the finance ministry, which is banking heavily on the auction money to reduce the fiscal deficit. The head of telecom practice at KPMG, Romal Shetty, said: “Seeing the market conditions and the financial health of telecom companies… it is difficult (to say) that the prices of spectrum will come anywhere close to prices discovered in 3G auction in 2010 (about Rs 16,000 crore for a pan-India 3G… Continue reading
Last Updated: Tuesday, February 28, 2012, 23:53
New Delhi: Invoking bilateral investment treaty, Russian conglomerate Sistema Tuesday said it has asked the Indian government to resolve within six months the dispute related to the cancellation of 21 telecom licenses of its local joint venture.
Sistema, Russian billionaire Vladimir Evtushenkov’s holding firm, sought resolution of Sistema Shyam TeleServices (SSTL) losing licenses, under the Bilateral Investment Treaty.
It added that the company reserves the right to begin proceedings against India in an international tribunal if the dispute is not settled “in an amicable way” by August 28.
SSTL President and CEO Vsevolod Rozanov said Sistema JSFC, which is the majority shareholder in SSTL, “has invoked its right under Article 9.1 of the BIT signed between the Government of the Russian Federation and the Government of India for the promotion of mutual protection of investment…which came into force on August 5, 1996.”… Continue reading