Tata Teleservices to shell out Rs 4,500 crore for spectrum

New Delhi, Oct 6 Tata Teleservices made total commitments of Rs 4,500 crore mainly to protect its spectrum holding in three circles, including highly-lucrative markets of Mumbai and Maharashtra, in the five-day auction that ended today.

It was important for Tata Group company to get spectrum in Mumbai and Maharashtra circles as its licence in these circles is set to expire next year.

According to sources, the company has shelled out Rs 4,500 crore in the auctions for acquiring spectrum in three circles, including Rs 2,400 crore for purchasing 5 Mhz spectrum in the 1800 Mhz band in Mumbai.

Sources added that the company bid agressively against the likes of Idea Cellular to secure the required spectrum.

In Mumbai, where the base price for 1800 Mhz spectrum was set at about Rs 1,430 crore, the company ended up paying a heavy premium to protect its holding, they said.

The company has also acquired 5Mhz spectrum in Maharashtra circle for Rs 1400-1500 crore, while in Andhra Pradesh, it has acquired 2.4 Mhz spectrum for Rs 500 crore.

PTI