The Telecom Commission wants more slots of spectrum to be auctioned. The Commission, which met on Thursday, has decided to make available at least 10 Mhz of 2G spectrum for auction.
This is double of what the telecom regulator had proposed. In case the DoT is able to get more spectrum vacated from the defence forces then even that can be put up for auction.
Extra amount of spectrum will make prospects brighter for new players as they can now hope to win at least one slot.
The Commission, however, did not take a decision on the base price for the auction. While the TRAI had suggested Rs 18,000 crore for 5 Mhz chunk of spectrum, an internal committee of the Department of Telecom proposed to hike it further by 17 per cent.
But according to sources, a new view is emerging whereby the reserve price could be pegged between Rs 7,000-8,000 crore.
“Since the Government is not keen on allowing staggered payment or mortgaging spectrum, there is a case for a lower reserve price,” said an official source.
The TRAI had suggested a high reserve price with the condition that auction winners be allowed to pay the winning bid amount over a 10-year period. The Telecom Commission will meet again on Saturday to take a final view on this issue.
Once the Commission takes a view, it will be sent to the Empowered Group of Ministers for a final policy decision.
The Commission has also agreed to TRAI's proposal to liberalise spectrum which means operators will be able to deploy any technology. However, it has rejected proposal to change the roll out obligation for mobile operators.