The Union Cabinet has to decide on the reserve price for the spectrum auction of the 2,100 MHz band. The same band is used for providing 3G services to the mobile phones users. The Telecom Commission has recommended a base price of Rs 3,705 crore per megahertz for the 2,100 MHz band for the upcoming auction next month.
As per a report from PTI, the Cabinet is likely to take up the pricing of spectrum in 2100 megahertz (MHz) band tomorrow. The base price recommended by the Telecom Commission is 11 percent higher than what the telcos paid in 2010 auction. Moreover, it is also 36 per cent higher than sectoral regulator Trai’s recommendation of Rs 2,720 crore per Mhz.
The Telecom Commission has considered sale of only 5 MHz of 3G spectrum while determining the price as the Defence Ministry has agreed to free only 5MHz of this frequency band. The Telecom 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’.