Tata Teleservices and Aircel can not bid for airwave bands as these two telcos have declared a negative net worth for the next month spectrum auctions.
The Department of Telecommunication said that an operator must have a net worth of Rs 100 crore, according to the auction rules. This would make it eligible for the telco to buy airwaves in a new band in a circle where it holds spectrum or expand its geographical coverage.
Tata Teleservices has been restricted from bidding in such service areas where the applicant does not have spectrum. The areas where the telco has been restricted from bidding include Assam, North East and Jammu & Kashmir.
According to the telecom department's website, Aircel, with a negative net worth of Rs 6,668 crore, had furnished Rs 500 crore in bank guarantees as earnest money deposit (EMD) while Tata Teleservices surprised everyone with an EMD of Rs 1,500 crore, higher than those submitted by Uninor and Reliance Communications BSE 0.29 %. Tata Tele had a negative net worth of Rs 8,985 crore.
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