Sistema Shyam TeleServices Ltd (SSTL), which provides CDMA services under MTS brand, has decided not to take part in the upcoming spectrum auctions, citing high spectrum prices.
"SSTL has consistently maintained that the pricing of 800 MHz spectrum at Rs 3,646 crore per MHz, is way out of line and does not merit a strong business case for buying additional spectrum. The company continues to maintain that such pricing does not take into account the realities of the prevailing ecosystem within the 800 MHz band," the company said in a statement.
At present, the company has operations across nine circles in the country. It needed additional spectrum in the 800 MHz band for expanding services to the remaining 13 circles in the country.
The national exchequer expects to garner more than Rs 80,000 crore from the upcoming 2G and 3G services, slated in March 4.
SSTL, which owns spectrum across 8 circles won during the auction in March 2013, had approached Telecom Disputes Settlement and Appellate Board seeking reassignment or rearrangement of the frequencies.
This matter is coming up for hearing on February 18,it added.