One of the surprise bidders at this exuberant price of Spectrum is Videocon Telecommunications. Videocon on its website lists as a $5Bn conglomerate but if you see the market capitalization of its flagship Videocon Industries, it is mere $1Bn and add another $1Bn for its unlisted energy ventures, that’s it. Everybody in the market knows which Politicians of Maharashtra have backed this company for vested interests 😉
So the question remains, on whose behalf is Videocon bidding ? In my opinion it is none other than Reliance Industries Ltd headed by Mukesh Ambani. Reliance Infotel Broadband already has 4G / LTE Spectrum in 2300 MHz band for Data Services. However, 4G / LTE Data only service [VoLTE] is atleast 3 years away in India to be a mass market. Thus, Mukesh Ambani has no choice but to offer complete bouquet of Wireless Services including Voice. Another strong reason to believe that Mukesh Ambani is backing Videocon is due to the fact that it has shown fresh interest in 800MHz band which is likely to be used for Data Services complementing 2300MHz LTE Spectrum. Continue reading Is Mukesh Ambani Backing Videocon Telecom for Spectrum Auction Using our Bottom 16 Bid Strategy ?