(The Times of India via NewsEdge) Hutchison Essar's $16 billion-$21 billion valuation, the largest seen in India for a mobile company so far, is inadvertently influencing spectrum valuations.
While speculation remains focused on the most likely suitor for Hutch, Vodafone, Essar, Reliance, and Orascom, the government is getting pushed on the decision to auction spectrum.
According to a senior Department of Telecommunications official, the committee on spectrum is likely to finalize its report in 15 days, after which it will be placed first before the Telecom Commission and before telecom minister, Dayanidhi Maran.
And, the high-decibel Hutch Essar equity sale is only making it difficult for the government to bow out of the auction route as most telecom companies would prefer.
The government believes additional spectrum charts future growth for mobile companies and is key to the valuation being offered.
Senior government officials say it will be very difficult to give spectrum through anything less than an open bidding process.
Industry observers meanwhile said high spectrum charges will lead to higher tariffs.
© 2007 The Times of India
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