Indian 3G auction will proceed on schedule, says minister
Published: 14 December, 2009
READ MORE: Spectrum | India | Vodafone | Regulator | UMTS
Despite the latest round of delays to the Indian 3G auction process, telecoms minister
Andimuthu Raja insists the sale will kick off on January 14 as planned, even though some pre-auction deadlines have already been missed. That would mean the WiMAX spectrum sale would take place immediately after the conclusion of the 3G sale, as planned.
However, Raja says these issues are still up for discussion, and the final decision on how many licenses to offer will lie with a powerful committee of politicians from different departments, the empowered group of ministers (eGoM).
India's Economic Times also reported on Wednesday that successful bidders may initially have to pay only 25% of the bid amount and pay the outstanding balance when they receive the airwaves. According to an internal DoT memo, one successful candidate will be awarded 3G spectrum immediately after the auction finishes while the second will get its frequencies in July and the third in September - in line with the schedule for the armed forces to vacate the spectrum.
Also in India, the international pattern of holdings gets more complex by the day. Vodafone, which is the majority holder in Vodafone Essar, is looking to raise up to $2bn by selling off its 4.39% stake in the largest Indian cellco, Bharti Airtel. It originally bought an indirect stake totalling 10%, though two private equity firms, but reduced this after buying out Hutchison in the Essar venture in 2007. SingTel is said to be a potential buyer of the remaining stake. Vodafone will also consider listing Vodafone Essar after 2010, if Essar exercises its option to sell its 33% share to Vodafone in the 12-month window from May 2010.
Meanwhile, the Russian government has acquired a 20% stake in fledgling Indian cellco Sistema Shyam TeleServices (SSTL) for $676.9m. The operator will use the funds to build out its network, issuing 662.75m shares, representing a 19.8% stake, on a preferred basis to the Russian Federal Property Agency at $2 each. The unlisted firm is 73.71% owned by Russian conglomerate Sistema, while India's Shyam Group holds 23.79% (the remainder is held by minority shareholders). According to Wireless Intelligence, SSTL had just under 2m connections by the end of the third quarter.
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