The union cabinet, which met today, approved a base price of Rs14,000 crore for 5 MHz of pan India radio spectrum in the 1800 MHz band.
The price is for spectrum in the 1800 MHz band, in which GSM-based mobile carriers operate.
The cabinet also approved the recommendations of empowered group of ministers (EGoM) to keep the reserve price of 800 MHz band at 1.3 times that of the 1800 MHz band.
The 800 MHz band is currently used by CDMA-technology based carriers such as the Indian unit of Russian conglomerate Sistema.
The cabinet also approved the Telecom Regulatory Authority's (TRAI) recommendations on `Spectrum Management and Licensing Framework', which deals with the pricing of spectrum.
The existing slab rate system for spectrum usage charges (SUC) recommended by EGoM has also been approved as the preferred option.