Videocon Telecommunications will bid for the Delhi telecom circle, the most expensive, it said on Monday.
It currently operates in seven circles. Videocon has appointed Deloitte as a consultant.
The company’s comes after the Telecom Regulatory Authority of India decided to cut spectrum auction prices by 60 per cent.
The company had earlier complained the regulator was being unfair by cutting the floor price of spectrum, as they had bought licences in November auctions at a much higher price.
“The sharp cut in the floor price for 900 MHz spectrum is very attractive, and particularly for the Delhi telecom circle it makes a lucrative business case.
“The Delhi telecom circle is of utmost importance to us, both strategically and potentially, and the fact that the Delhi licence will be available in the 900 MHz spectrum completely fits in our strategic framework,” said Arvind Bali, chief executive.
Spectrum in the 900 MHz band is at least 1.5 times more efficient than the 1,800 MHz band that GSM operators use currently.
Bali says the choice to bid for Delhi is a ‘no-brainer’.
“Delhi is the hub of the Hindi-speaking belt &