Govt slashes spectrum reserve price by half to Rs9,100 crore
17 Jan 2013
The government today announced a 50-per cent reduction in the reserve price for auction of the 800 MHz spectrum used by CDMA mobile operators, giving a big boost to mobile phone operators like Tata Teleservices and Reliance Communications.
The union cabinet today approved a reduction in the reserve price for the minimum bid quantity of 5 MHz band in all service areas to Rs9,100 crore, from Rs18,200 crore fixed earlier.
''The cabinet has approved a 50-per cent reduction in CDMA spectrum price, which was fixed earlier at Rs18,200 crore (pan India 5MHz),'' telecom minister Kapil Sibal said, adding that the auction of both GSM and CDMA spectrum will be completed by 31 March.
Where auction-determined price is not available, spectrum currently held in 800 MHz band by existing operators in all service areas will be charged at the revised reserve price with effect from 1 January 2013 on the applicable quantum of spectrum.
Once auction determined price becomes available, the earlier payment made on the basis of reserve price would be adjusted against the amount actually due.
Sibal refused to quantify government's revenue expectations from the spectrum auction and left it to be determined by market forces.
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