2G auction: Ambani vs Ambani, officially

NEW DELHI, INDIA: The rivarly between the Ambanis Ambani (read Mukesh and Anil) brothers  may soon enter a new phase. Thanks to India's telecom pie!

As the battle lines are drawn for the upcoming 2G spectrum auction, both brothers, who are on a spree to surge their telecom business, would pitch against each other as potential bidders.

The non-compete agreement between the two was scrapped in 2010.

Early this month, the RIL's representatives rubbing shoulders with Reliance Communications (RCom) executives in the pre-bid consultation with DoT may have fuelled speculation but the former's intent could further intensify the auctioneering.

Touted as a gala foray into voice services, Mukesh Ambani-led Reliance Industries Limited (RIL) would be one of the most aggressive bidders, believe industry pundits.

Its telecom arm Infotel Broadband holds pan-India broadband wireless access (BWA) spectrum for 4G services.

With the top court rap on controversial first-come-first-serve policy, the Centre is all set to steer through bottlenecks, and is eyeing a whopping revenue out of 2G airwaves auction in 22 service areas.

A DoT official, however, believes that any kind of restriction in proposed auction would not yield market price.

Facilitating new players, DoT in its auction rules notification on September 25 notified that a new entrant bidder can submit the bid for a minimum of four blocks with a permission to bid for an additional block of 1.25MHz. Initial eligibility, the department said, will be determined by the earnest money deposit.

The Reliance Communications, rattled with intense competition, recently increased a marginal call base price. In its previous quarterly report, the company said that it enjoys a loyalty of 162 million subscribers. RCom has a market share of 16.6 per cent in the wireless space.

The brothers' feud: Timeline

November 2004: The rift between the Ambani brothers comes in open.

June 2005: Their mother Kokilaben brokered a demerger. Mukesh gets oil, gas, petrochemicals, refining and manufacturing while Anil took reign over telecom, electricity and financial services business.

December 2005: The split gets approval.

November 2006: Anil Ambani challenges a gas contract undertaken by Mukesh company during the split.

2008: Anil accuses Union Petroleum Minister Murli Deora on dealings with Mukesh.

June 2008: One of Anil's companies is suspected of losing a deal because of Mukesh's involvement

September 2008: Anil files a defamation suit over statements Mukesh made to The New York Times

2009: Anil blames the Mukesh's company for power cuts throughout India

July 2009: Mumbai court order forced both Anil and Mukesh companies to enter into gas supply agreement.

August 2009: Anil takes out advertisements that blames Reliance Industries and the government.

August 2009: The finance minister Pranab Mukherjee ask the brothers to stop feud for the sake of the capital markets.

October 2009: The brothers rings the Supreme Court over gas dispute

May 2010: Supreme Court favours Mukesh in its judgement; Their mother brokers a peace agreement between them.

June 2010: Anil withdraws defamation suit against Mukesh.