3G auction: Cabinet nod for 3,705 crore as base price

The Cabinet has decided on a reserve price of Rs. 3,705 crore per MHz for the 2100 MHz band for the spectrum auctions, Telecom Minister Ravi Shankar Prasad said here on Wednesday. 

At a press conference, the Minister said the government had decided to accept the Telecom Commission’s recommendation to price the 3G spectrum at that price for the March 4 auction. The base price suggested by the Commission is around 11 per cent higher than what telecom firms paid for in the 2010 sale. It is also 36 per cent higher than Telecom Regulatory Authority of India’s recommendation. 

“There is no spectrum deficit in the country. What is available is being released. The government believes it is adequate. When more is needed it will be released and auctioned. At the reserve price for the amount of spectrum being auctioned should fetch the government at least Rs. 80,000 crore.”