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Successful eSale of BTS

case-studies

valuejunction was approached by Tata Teleservices to sell 755 units of scrap BTS (base transceiver station) which had been lying idle with them for over 3 years.

The Client:

Tata Teleservices provides end-to-end telecommunications solutions for business and residential customers across the nation and internationally by offering telephony services- data services, value added services and infrastructure services and media and entertainment services. It is a pioneer of the CDMA 1x technology platform in India and also has a significant presence in the 2G GSM space.

The idle asset under sale:

valuejunction was approached by Tata Teleservices to sell 755 units of scrap BTS (base transceiver station) which had been lying idle with them for over 3 years. BTS is an equipment that facilitates wireless communication between user equipment (mobile phones, computer with internet etc) and a network (GSM, CDMA, WAN, Wi-Fi, WiMAX etc).

The Business Challenge:

  1. The BTS could only be sold as eWaste
  2. The BTS could be sold to only registered eWaste recyclers with available finance
  3. Only a few local buyers were available. However, they were not registered as eWaste recyclers and neither did they offer a good price for the BTS

The Solution & Strategy

valuejunction met the challenge in a systematic, efficient & innovative matter. They first enlisted interested eWaste recyclers with a capacity to finance the buy of 755 units of BTS. Since the BTS could only be sold to eWaste recyclers, valuejunction decided to sell the BTS units as per their weight. The market survey pegged the price of the BTS at Rs. 110 per kg.

A forward auction with 22 qualified eWaste recyclers was conducted. The bidders bid competitively and valuejunction achieved a price of Rs. 136 per kg. The 755 units of BTS weighing 240 metric tonnes was sold at a price of Rs. 326.4 lacs.

Results & Achievements:

Tata Teleservices received significant benefits due to valuejunction’s assistance.

Conversion of idle asset into capital: The BTS Units which were lying idle and hence accruing costs. valuejunction was able to unlock the value of the idle BTS units by selling them at a competitive price.

Good Price Realization: There was a good price realization for the BTS. Price achieved through the e-auction was Rs. 326.4 lacs

A large bidder base ensuring competitive price: 22 bidders took actively took part in the auction. The competitive bidding resulted in a 23.63% increase in the final price the BTS was sold at.