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2G Auction: Uninor Wants Reserve Price

Norway's IT minister Rigmor Aasrud met Indian IT minister Kapil Sibal in last week to discuss the issue regarding 2g Auctions and supreme courts order of the cancellation of license of Norwegian telecom operator Uninor. Telenor in which the Norwegian government has 54 percent stake, owns nearly 2/3 of Uninor with infrastructure provider and rest 1/3 stake is being hold by an Indian infrastructure company Unitech.

      Last week Supreme Court of India revoked 122 2G licenses which includes 22 licenses held by Uninor. Communication and IT minister Kapil Sibal said that the Indian telecom industry always remained an attractive destination for foreign investment and faced no shortage of airwaves. Indian market is full of opportunities and no one should be doubt on investment to come into India as it is always safe and fruitful. Communication, Telecommunication sector is robust and enough spectrum is available in INDIA. According to Norway's IT Minister Telenor has not done anything wrong in INDIA and licenses were handled out before Telenor entered the telecom market in India.
    While in another news Mobile service provider Uninor on Friday asked the telecom regulator to set a reservation price of Rs. 1658 Crore as the license fee for operators for the new auction of 2G spectrum. According to Telenor auction's base price would help them decide whether to remain in the Indian Market or not.  Sigve BrekkeFree Reprint Articles, Uninor's CEO said that he had asked TRAI (Telecom Regulatory Authorities Of India) to limit the new auction to newer operators initially. He also asked for licenses to be bundled with 6.2 MHz of spectrum. They have recommended TRAI to make sure that consumer continues to benefit from new competition that all operators are equally and fairly treated and transparency will be retained in the entire process. Indian Government should seek to increase the competition rather than aim for high revenues as in the auction in 2008. Government policy should be to reduce tariff and attract more consumer. Government need to disclose how much spectrum it had available for private mobile service providers.   


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