The Cabinet has decided on a reserve price of Rs 3705 crore per Mhz for the 2100 Mhz band for the upcoming spectrum auctions, telecom minister Ravi Shankar Prasad said here today.
The Cabinet has decided on a reserve price of Rs 3705 crore per Mhz for the 2100 Mhz band for the upcoming spectrum auctions, telecom minister Ravi Shankar Prasad said here today.
At a press conference, the minister said the government had decided to accepted the Telecom Commission's recommendation to price the 3G spectrum at that price, 36 percent higher than suggested by the Telecom Regulatory Authority of India (TRAI).
"We have taken the market-discovered price, based on the auction price during the 2010 auction [when 2,100 Mhz spectrum was last sold]," the telecom minister said.
Based on the above, it should translate into revenues of Rs 18,500 crore for the government considering it has decided to put up 5 Mhz of airwaves on the block.
Besides the 2100 Mhz band, the government will auction 103.75 Mhz of spectrum in the 800 Mhz band, 177.8 Mhz in the 900 Mhz wavelength and 99.2 Mhz of 1,800 Mhz spectrum, in an auction that is expected to garner anywhere between Rs 80,000 crore and Rs 1 lakh crore for the state kitty.
Prasad added that over and above this, the government has identified 40 bands in the 3 Mhz-4Mhz space and 31 bands will be released by the defence services, and which will be co-exist with other users of spectrum such as civil aviation etc.
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