Russia/India: Lone bidder for cellphone frequency could ignite antitrust probe

According to reports, authorities in India could be ready to launch an investigation into a lack of bidding competition in India for the nation’s CDMA frequencies for cell phones. Russia’s Sistema Shyam Teleservices is reportedly the sole bidder for those frequencies, as its competitors have agreed to boycott the bidding altogether. Reports note that this could be a method of forcing a lower starting price for the bidding. Sistema Shyam Teleservices, or SSTL, needs to secure new CDMA licenses as it lost its previously-held licenses last year after they were cancelled by India’s Supreme Court, which found that companies had acquired the licenses at reduced prices. When India agreed to put part of the spectrum back up for auction, companies cried foul at its starting price of $3.3 billion. Russian President Vladimir Putin made a trip to India, which resulted in the halving of beginning bid prices. While the new action is scheduled for March, companies continue to argue the starting prices are still too high.

Full Content: Russia & India Report

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