Vodafone India has criticized the government's decision to put all airwaves for auction that is currently being held by telecom operators, whose licences are expiring in 2014, saying the new spectrum auction norms are unfair, discriminatory and coercive in nature.

In a letter to telecom secretary R Chandrasekhar, Vodafone India argued that spectrum sold at such an auction would not reflect its true market value and therefore clearly not be in interests of public, industry as well as government.

Criticizing the new spectrum auction norms, the operator said, "Spectrum sold at such an auction will not reflect its true market value and therefore will destroy the value and business case for the acquirer."

The network provider argued that it was in a separate class of operators, and therefore should not be treated equivalent to a new entrant or an existing licencee looking for extra spectrum.

The company urged the government to re-evaluate its decision and added that it was willing to pay a market determined price discovered by way of a fair auction for extension of its licences.

The government recently slashed the base price for spectrum in four circles, viz. Delhi, Mumbai, Karnataka and Rajasthan, by 30 per cent. In government had failed to get a single bid for spectrum in these circles in the first round of auction due to high reserve prices.

The government aims to pocket around Rs 40,000 crore from spectrum auction in the current fiscal year.