High cost of spectrum made Tata Teleservices to take this decision, says sources

Tata Teleservices on Monday withdrew its application for participating in CDMA spectrum auction, leaving the fray for radiowaves in 800 Mhz band with no bidder as another player Videocon had walked out two days ago.

According to sources, Tata Teleservices has withdrawn its application saying high cost of spectrum has made the business unviable.

When contacted, a company spokesperson declined to comment.

Earlier in February this year, the Supreme Court had cancelled 122 permits, including that of Tata Teleservices in three circles.

Videocon Group, which was the only other applicant for CDMA airwaves, had withdrawn its application on November 2.

The auction for spectrum in 800 Mhz band is slated to begin two days after the winners of 1800 Mhz band auction are declared.

In 800 Mhz band, there is a shortage of spectrum and the government will auction 3 blocks 1.25 MHz each in 19 telecom circles.

At the reserve price, each block of 800 Mhz band will cost Rs 4,550 crore which is 1.3 times of the price of airwaves frequencies in 1800 Mhz band, used for providing GSM services.

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