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Cabinet declared spectrum reserve price
Dec 10, 2013

The Cabinet has approved the reserve price for the auction of 2G telecom spectrum in the 900 and 1800 Mhz band, keeping it 25.8 per cent lower than the previous auction, as suggested by the Empowered Group of Ministers (EGoM) on telecom.

However, the base price for the same spectrum was about 37 per cent higher in the November 2012 auction, which received a muted response from telecom operators. Following that, the government had reduced the price by about 30 per cent for March but it failed to get any bidder.

The government will conduct auction in all 22 circles in 1,800-MHz band and in Delhi, Mumbai and Kolkata in 900-MHz band. For the 900- MHz band, it approved a rate about 53 per cent lower than the previous auction price. The reserve price for one MHz spectrum in 900-MHz band will be Rs 360 crore in Delhi, Rs 328 crore in Mumbai and Rs 125 crore in Kolkata. Licences will be due for renewal in November 2014 in these three circles.

The EGoM has also decided to auction 403 MHz of spectrum in the 1800-MHz band, which is about 41 per cent more than what the government had actually proposed earlier.


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