Inter-ministerial panel Telecom Commission (TC) has rejected Telecom Regulatory Authority of India (TRAI)’s suggested reserve price for 3G airwaves proposed for next month's spectrum auctions and sent it back to the latter for reconsideration.
The commission, in its meeting felt that Rs 2,720 crore pan-India per megahertz reserve price recommended by TRAI late last year wasn’t adequate and prices could be kept higher. Notably, telecom commission’s suggestion came after an internal committee of the Department of Telecom (DoT) reportedly suggested a base price of Rs 3,899 crore per megahertz for the 3G spectrum, which was about 43% higher than the rate recommended by TRAI.
With this, TRAI is again expected to revise its reserve price and re-send it for consolidation to Telecom Commission in a fortnight. The government plans to auction at least 5 MHz of 3G spectrum along with the sale of airwaves in the bands of 800 MHz, 900 MHz and 1,800 MHz in the upcoming sale in February. Overall, the exchequer is at least assured of collections to the worth of Rs 80,000 crore at the base price.
Earlier in the week, the Union Cabinet approved the proposal to auction 800 MHz, 900 MHz spectrum, with a reserve price of Rs 3,646 crore, Rs 3,980 crore Per Mhz respectively on pan India basis, excluding Delhi, Mumbai, Kolkatta, and J&K, while it fixed the reserve price of Rs 2,191 crore pan-India (excluding Maharashtra and West Bengal) in 1,800 MHz band.
