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The logjam over fixing the reserve price for 2G spectrum continued with the Empowered Group of Ministers failing to take a decision on Tuesday. The eGoM, however, decided that at least 10 Mhz of spectrum will be put up for auction. It also agreed to go ahead with spectrum re-farming. The Group, headed by Finance Minister, Mr Pranab Mukherjee, will meet again on June 22.
The spectrum pricing formulas suggested by both TRAI and an internal DoT committee were presented to the Empowered Group of Minister for a final decision. While TRAI had proposed Rs 18,000 crore as the reserve price for 5 Mhz spectrum, the DoT panel had proposed a 17 per cent higher fee. Top Government officials said that the issue could not be settled because the TRAI had not presented its analysis on the likely impact of its proposal on consumer and industry.
Quantity to be sold
The Telecom Commission had also presented two options for deciding the quantity of spectrum to be sold. The first option was to offer a minimum of eight blocks each of 1.25 Mhz to be put up for auction in all service areas after reserving for re-farming. In addition, a provision may also be inserted to make available another three blocks of 1.25 Mhz to meet the requirement of new entrants.
The second option was to put all spectrum available on the block, which includes 55 Mhz spectrum to be vacated by the Defence. The GoM has taken a view to go with the first option.
Existing players will be allowed to win a maximum of two blocks of 1.25 Mhz each while new players can bid for up to four blocks of 1.25 Mhz each. For CDMA operators, three blocks of 1.25 Mhz in the 800 Mhz band will be put on the block.
Last date
The last date for receiving queries by prospective bidders has been extended to June 8, while the date for submission of bids is extended to July 5.
The telecom department is running against time as the Supreme Court has set August 31 as the deadline for auctioning spectrum.
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