Spectrum squatting
http://www.thehindubusinessline.com/2008/10/30/stories/2008103052820100.htm
Apparently, someone in the govt. and the promoters of big realty firms have made lot of money out of this spectrum squatting.
http://www.thehindubusinessline.com/2008/10/30/stories/2008103052820100.htm
Apparently, someone in the govt. and the promoters of big realty firms have made lot of money out of this spectrum squatting.
October 30th, 2008 at 12:18 pm
black la ticket vikkardhu pola..the lower the value of the heist, the more it is treated as a crime.
October 31st, 2008 at 8:47 am
curdrice..
Exactly! Our honble minister says licence fees will fetch more returns for the govt in the long run than auction…
That still leaves open the question why they did not insist on lock in period. That way they could’ve ensured only those serious of starting the business applies for a licence..
October 31st, 2008 at 10:44 am
Or else like how some Football teams do when they sell their youth academy players to other teams, including clauses in the contract which enables them to keep getting payments every year based on the players performance at the new club. the govt should at least try to gain something out of the exit in the lock in period. Just saying that license fees will be enough doesn’t make sense. Govt. should be making the most of these kind of auctions so as to raise capital for other schemes.
But there is another side to it. Last year in AP, when liquor licenses were up for the biennial auctions, after the bidders noticed winning bids go to the tune of 3 crore in some areas of Hyderabad, there was collusion amongst the bidders in Coastal Andhra. Similar thing happened with HUDA land auctions this year, after a couple of years of high winning bids but no one coming up to pay up after winning.
October 31st, 2008 at 11:13 am
I see the collusion angle. But we can fix a reserve price, right?
In the whole of 2008, the saving grace for Unitech has been the buying of telecom licence. The amt paid by Telenor is too much i think..they have agreed to pay abt 6K crores for 60% stake(so business is approx.10K crores valued) while the market capitalization of a moderately successful company like Idea which is operational is abt 9K crore…
Ennamo.. all this is new to me…
October 31st, 2008 at 11:56 am
and that 10k crore is for without any infrastructure and just a piece of paper called licence
and what comes with it. are we witnessing another era of bloated estimations?
reserve price is anyway met
that is a given, it is what the govt gets over and above that is the worry. may be with lock in and without lock in clause can have different reserve price.
December 12th, 2008 at 8:38 am
Better late than never, Raja is getting his due finally.