VSNL, which has started telecom operations in South Africa as its V second national operator, is facing a spectrum shortage.

Through VSNL, the Tata Group has 26 per cent stake in Neotel, which provides fixed mobility, internet and broadband, and fixed line services in South Africa. Neotel does not have spectrum in the 800 MHz band, which is needed to provide fixed mobility service on CDMA.