Spectrum auction should happen quickly as govt need rev: Sibal
New Delhi: Telecom Minister Kapil Sibal on Wednesday said DoT needs to quickly decide on Trai recommendations on spectrum reserve price for conducting auctions at the earliest as the government needs to generate revenue.
"We are very keen to get revenue to government and therefore, naturally, this auction should take place as quickly as possible... Finance Minister needs revenue. I think we need to take decisions on recommendations quickly so that we can make sure that auction can be successful," Sibal told reporters after a meeting with telecom operators here.
The Minister, however, refused to share a timeline for the upcoming auction.
Telecom Regulatory Authority of India has recommended a sharp 60 percent cut in the floor price of spectrum for the upcoming auction after two previous sales drew weak response because of high reserve price.
It has suggested a pan-India reserve price of Rs 1,496 crore per MHz in the 1800 band, down 37 percent from the base price set in the previous auction.
For 900 MHz band, Trai recommended a reserve price of Rs 288 crore per MHz for Delhi, Rs 262 crore for Mumbai and Rs 100 crore for Kolkata. These rates are about 60 percent lower than the reserve price in the previous auction.
The reduction in reserve prices follows the failed March auction, which drew just one bidder.