2G no-show: Is it cartelisation of telecom players?

GN Bureau | November 15, 2012



A cash-strapped UPA government which hoped to raise over Rs 40,000 crore from the 2G spectrum auction was in for a shock when telecom companies decided to stay away from it. The government could just get Rs 9,407 crore from the auction.

Angry over the high reserve price (of Rs 12,850 crore), the companies apparently ganged up to foil the government’s money-churning plan. While the lucrative Delhi and Mumbai circles had no takers, no one applied for an all-India licence too.

Is it a mistake on part of the government to set a high base price? One would tend to believe this but then how does one explain the fact that no telecom player bid for high lucrative Mumbai and Delhi circles (there were no takers for Karnataka and Rajasthan either)? That leads us to the question: Is it cartelisation of telecom players?
 

 

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