Yesterday we reported about the 2G spectrum auction ended with a flop, and today poor news comes from Uninor. Telenor, the parent company of Uninor, has just managed six circles in the auction. More to this, the brand Uninor will now need to be re-branded. It will no more operate with the same name. However, the new name has not been yet finalized.
Earlier (even currently) Uninor served mobile users from nine circles. It will be wrapping up services from four circles.
Apart from losing four circles, Uninor gets permission for offering 3G services. Well, it is not very clear whether it will go on with the new permission as it has less than 5 Mhz overall spectrum. Offering 3G services will strain up the entire network in such a limited spectrum.
If it is to lure new customers, Uninor could go on in offering 3G services. In another few days news may arrive with more clarity.
The auction was below the target that government has put up. The total bids amounted to Rs 9,407.64 crore. Government's target was a minimum of Rs 28,000 crore from the sale of 2G spectrum in the GSM band. None of the 5 companies bidding made any offer for pan-India air waves.
Videocon and Idea won spectrums in seven circles. Vodafone and Airtel in one circle each.
One good news is there of course for users. As the bid was of low values, the pricing of telecom services may remain unaffected. Well, it may not be as low as the recent hypes of half paisa per second calling.