Thursday, May 20, 2010

3G auction :Except Etisalat, Videocon all are winners


Source :Shalini Singh, TNN, May 20, 2010, 01.21am IST

NEW DELHI: The close of the 3G auctions had most of the 9 bidders emerging winners with the exception of Etisalat and Videocon, which were unable to bag a single circle. Vodafone, Bharti and Reliance all bagged the lucrative Delhi and Mumbai circles for a whopping Rs 3,316.93 crore and Rs 3,247.07 crore respectively.

Bharti, which had pan-India 3G ambitions had to settle for just 13 circles along with Reliance Communications and Aircel. Airtel is the biggest spender, forking out Rs 12,290 crore, followed by Vodafone at Rs 11,617 crore, Reliance Rs 8,583 crore, Aircel Rs 6,498 crore, Tata Rs 5,864 crore, Idea Rs 5,768.59 crore and S Tel at Rs 337 crore.

Idea won 11 circles, followed by Vodafone and Tatas with 9 circles each. S Tel bagged three circles. According to Kunal Bajaj, MD of Analysys Mason India, a global telecom consulting firm, "all the operators have displayed extremely different bidding strategies."

According to him, "in terms of quality of circles and money spent, Idea has displayed the most intelligent bidding propensity by leaving out Delhi and Mumbai and opting for 3 category A, 5 category B and 6 category C circles. Idea has 11 circles but has the lowest financial outflow out of the five other big telcos. Similarly, while Aircel has the same number of circles as Bharti Airtel, it is paying almost half the price that Airtel is."

Bajaj points out that Reliance and Tatas followed opposite strategies. Reliance has opted for the high-value Delhi, Mumbai circles but no category A circles, 5 category B circles and 6 category C circles. In contrast, the Tatas have given up Delhi, Mumbai and taken 3 category A and 6 category B circles.

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