The Telecom Commission has recommended the base price of Rs 3,705 crore per MHz as 3G spectrum base price for the coming up spectrum auction. This base is eleven percent higher than what the companies paid in the spectrum auction of 2010. Moreover, it is also 36 percent higher than the amount finalised by the Telecom Regulatory Authority of India.
As per a report by PTI, an official stated that, TC (Telecom Commission) is of the view that Rs 3,705 crore should be the base for 3G spectrum. The pricing will be proposed to be placed before Cabinet on Wednesday. At the time of finalising the price Rakesh Garg telecom secretary has taken into account on 5MHz of 3G spectrum. This is only 25 per cent 20 Mhz recommended for auction by TRAI. The industry had also demanded sale of 20 Mhz.
TRAI has also suggested that 5 Mhz of 3G spectrum should be counted as one block. It can only be bought by one company; the panel has suggested that 5 Mhz be divided in to two blocks of 2.5 Mhz each. The Ministry has agreed to free 5 Mhz of 3G spectrum as of now and 15 Mhz when the government will notify a dedicated spectrum for defence forces as ‘Defence Band and Defence Interest Zone’.