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New 2G auction after India cancels licences
02 February 2012
The Indian supreme court has cancels 122 2G licences in corruption case and calls on regulator to hold new auction
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India
auction
2G
corruption
Idea Cellular
Tata Teleservices
Telenor
Uninor
The supreme court of India has cancelled the 122 2G licences issued by the regulator in the past four years and called on the regulator to hold a new auction which could see a shakeout in the over-provided market.
According to Indian newspaper the Business Standard the companies affected include Idea Cellular, Tata Teleservices, Swan Telecom, Loop Telecom, Videocon and Telenor joint venture Uninor.
The operators will be able to continue to use the old licences for a further four months but the Telecom Regulatory Authority of India has been told to produce guidelines for a new 2G auction within two months.
Telenor said: “Telenor has yet to review the ruling and will be able to comment further once we had a chance to review it.”
The decision is linked to the prosecution of Andimuthu Raja, a former telecoms minister, for alleged corruption. He resigned in November 2010 and was arrested a year ago, on February 2 2011.
Unitech Wireless and Swan Telecom have each been fined 50 million rupees — about $1 million. GTB
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