Inter-ministerial panel Telecom Commission has suggested a base price of Rs3,705 crore per megahertz as 3G spectrum base price for upcoming auction, about 11 per cent higher than what companies paid for the same in 2010 sale. It is also 36 per cent higher than what regulator TRAI’s recommendation of Rs2,720 crore per Mhz. “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,” an official source told the news agency.
The Commission, headed by Telecom Secretary Rakesh Garg, has considered sale of only 5 megahertz of 3G spectrum, while determining the price. This is only 25 per cent 20 Mhz recommended for auction by TRAI. The industry had also demanded sale of 20 Mhz. While TRAI has recommended 5 Mhz of 3G spectrum should be counted as one block, which means it can be bought by one company, the panel has suggested that 5 Mhz be divided in to two blocks of 2.5 Mhz each. All the 3G spectrum, which proposed to be put up for auction, need to be freed by the Defence Ministry. 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’.