Reliance Industries Ltd. (RIL) surprised market observers by its decision not to participate in the spectrum auction.

Cash-rich RIL had bankrolled Infotel Broadband, apparently to participate in the spectrum auction. Rumours about its potential participation in the auction were first trigger by its participation in the pre-bid conference.

But the Mukesh Ambani-promoted company decided to stay away, just as his brother Anil Ambani's Reliance Communication didn't apply for fresh round of bidding for 2G spectrum.

However, market observers are of the view that RIL's Infotel Broadband could acquire spectrum from some other company after the auctions. Some believe that it could buy out Videocon's spectrum after the auctions.

Reliance had pursued a similar strategy when it acquired a 95 per cent stake in HFCL Group's Infotel, which was the only company to be awarded pan-India 4G spectrum in the 4G broadband spectrum auctions of 2010.

Venugopal Dhoot, chairman of Videocon, said it would be early to comment on the possibility of selling its spectrum licences to RIL after the auctions, but admitted that the two companies had very good relations.

Speaking on the topic, he said, "We have very good friendship with RIL. We are always getting advice from them."

Meanwhile, Bharti Airtel and Vodafone have joined Telenor, Tata Tele, Videocon and Idea Cellular to apply for 2G spectrum auction in the fresh round of bidding, which is all set to start in November.