Telecom Commission (TC) has approved a base price of Rs 3,700 crore for each MHz of 2,100 MHz spectrum, which is used for 3G services, with 36 percent increase as compared with the suggested price by TRAI.
Telecom Regulatory Authority of India (TRAI) had suggested Rs 2,720 crore as the base price for the 3G spectrum.
Union Cabinet is likely to meet this week and take a final call, said a report in Business Standard.
In a major blow to telecom operators such as Bharti Airtel, Idea Cellular, Vodafone, etc. the Telecom Commission on Monday also decided that only 5 MHz of spectrum in the 2,100 MHz band will be put up for auctioning in February. The Government led by Prime Minister Narendra Modi is looking at mobilizing Rs 18,500 crore through 3G spectrum auction.
The government will be trying to sell spectrum in 2,100 MHz, 800 MHz, 900 MHz and 1,800 MHz in February. The government expects the auction round to garner revenue of Rs 80,000 crore to Rs 1 lakh crore.
TRAI wanted the government to auction 5+15 MHz spectrum to ensure better customer experience from 3G.
Communications and Information Technology Minister Ravi Shankar Prasad earlier said 15 MHz will be auctioned as and when it is vacated by the defense services.
The telecom and defense ministries have agreed to swap 15 MHz of 2,100 MHz spectrum by defence services in exchange for a similar amount of 1,900 MHz.
Baburajan K
editor@telecomlead.com
