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Tata Tele returns 20 MHz CDMA spectrum [Telecom] [Times of India](Times of India Via Acquire Media NewsEdge) NEW DELHI: Debt-laden Tata Teleservices and Tata Teleservices (Maharashtra) have surrendered about 20 MHz of CDMA spectrum to the Department of Telecom (DoT), a move coming after the government slapped a one-time fee for airwave holding beyond 2.5 MHz in a circle. Tata Tele - which also offers telecom services under the GSM band - informed DoT's wireless planning & co-ordination wing about the development in the first week of this month and the spectrum vacation has been done in 14 circles. "We have completed the surrender of CDMA spectrum in all circles wherein we have made the decision to surrender... It is pertinent to mention here that our responsibility and liability, if any, with respect to the surrendered CDMA spectrum has been fully completed and discharged," the companies said in a communication sent to DoT on December 2. The move by the struggling operator, which has a debt running to over Rs 23,000 crore, comes at a time when there are talks in the market that it may be up for sale. Japan's NTT DoCoMo is a 26% partner in the telecom venture controlled by the Tatas, while Singapore's Temasek holds about 7%. When contacted, a spokesperson for the company refused to comment on the development. While Tata Tele had got a stay from Calcutta high court over the payment of one-time charge for airwaves beyond the 2.5 MHz threshold in CDMA band, the company had made it clear that it will go ahead with the surrender. However, Tata Tele continues to retain a third carrier in Delhi and Mumbai circles, which makes its spectrum holdings in the metros at 3.75 MHz. The company has already paid the first installment towards the additional spectrum holding in Delhi and Mumbai, even though its legal challenge to the government's move is still before Calcutta high court. Analysts said the move to surrender the excess CDMA spectrum will be positive for Tata Tele, which will receive a refund for the vacated spectrum. "It is the right thing to do, especially as the CDMA customer base has not been growing. They are highly cash-strained and the move will be beneficial for their finances," an industry analyst said. "It improves shareholder value." Tata Tele offers telecom services in 19 circles, except for Jammu & Kashmir, Assam and the Northeast. In the last financial year, the company is reported to have incurred a net loss of Rs 4,858 crore on operating income of Rs 10,799 crore. (c) 2013 Bennett, Coleman & Company Limited |