Zee Media Bureau
New Delhi: The Union Cabinet on Wednesday approved Rs 3,705 crore per MHZ in the 2100 MHz band as base price for 3G spectrum auction, Telecom Minister Ravi Shankar Prasad said.
The inter-ministerial panel Telecom Commission had suggested a base price of Rs 3,705 crore per megahertz as 3G spectrum base price for the upcoming auction, scheduled for March 4.
The base price suggested by the Commission is around 11 percent higher than what telecom firms paid for in the 2010 sale. It is also 36 percent higher than sectoral regulator TRAI's recommendation of Rs 2,720 crore per Mhz.
The Commission, headed by Telecom Secretary Rakesh Garg, has considered sale of only 5 MHz of 3G spectrum while determining the price.
The Defence Ministry has agreed to free 5 Mhz of 3G spectrum as of now.
Last week, the Cabinet had approved swapping of 15 MHz of 3G spectrum between Defence and the Telecom Ministry. However, government will be able to provide it after completion of the harmonisation process.
The Telecom Ministry has proposed to exchange 15 Mhz spectrum it holds in 1900 Mhz band with same quantum of radiowaves held by Defence in 2100 Mhz.
The Cabinet has asked ministries involved in the process to complete harmonisation within a year.
With agency inputs