Zee Media Bureau
New Delhi: The Union Cabinet on Monday finalised the reserve price for 2G spectrum auction for various bands, which is scheduled for February 23.
The reserve price is fixed at Rs 3646 cr pan-India per MHZ in 800 MHz, Rs 3980 cr for 900 MHz band pan India excluding Delhi, Mumbai, Kolkatta, and J&K; Rs 2191 cr pan India (excluding Maharashtra and West Bengal) in 1800 MHz band.
The quantum of spectrum to be put to auction is 103.75 MHz in 800 MHz band in all service areas, 177.8 MHz in 17 LSAs in 900 MHz band and 99.2 MHz in 15 LSAs in 1800 MHz band. Thus a total of 380.75 MHz in 800,900 & 1800 MHz is being put to auction.
Payment terms, eligibility criteria and auction objectives shall be as in the previous auction of Feb 2014.
Cabinet also decided that intent to put 2100 MHz to simultaneous auction may be announced along with auction of other bands. Details of this will be announced later on.
The estimated revenues from this auction are Rs 64840 cr (excluding 2100 MHz spectrum) of which Rs 16000 cr is expected to be realized in the current financial year.
Sectoral regulator Trai had already given recommendations on the base price and other modalities for the auction of the radiowaves in 800MHz, 900MHz, 1800MHz and 2100MHz and has also suggested that all the bands should be auctioned simultaneously.
Trai had recommended a base price of Rs 2,720 crore per megahertz pan-India for sale in 2100MHz band — used for offering 3G services — which is about 19 percent lower than what operators paid in 2010.
It had earlier recommended a price of Rs 2,138 crore per MHz for the 1,800MHz band and Rs 3,004 crore per MHz for the premium 900MHz band.
For the 800MHz band — used by CDMA operators — the body had suggested a reserve price of Rs 3,104 crore per MHz.
With agency inputs
