Cabinet Clears 900 Mhz, 1800 Mhz Spectrum Auction Prices

The Union Cabinet has approved the finalization of the reserve price for auction of spectrum in 1800 MHz band for all service areas and for 900 MHz band in Metro service areas of Delhi, Mumbai and Kolkata.

The Cabinet Committee on Economic Affairs (CCEA) Monday cleared spectrum prices for 900 megahertz (MHz) and 1,800 Mhz, an official said in New Delhi.

                                                       Cabinet Clears 900 Mhz

The Telecom Commission had earlier suggested fixing a minimum Rs.1,765 crore per MHz as the price for pan-India spectrum (22 circles) in the 1,800 MHz band, 15 % higher than the Telecom Regulatory Authority of India’s (TRAI) suggested rate of Rs.1,496 crore

The Telecom Commission further suggested keeping the base price for 900 MHz at 25 % higher than what TRAI had recommended. The EGoM agreed with the recommendations of the Telecom Commission.

Spectrum in 900 MHz band will cost at least Rs360 crore per MHz for Delhi, Rs328 crore for Mumbai and Rs125 crore for Kolkata.

The government plans to auction these airwaves in the third week of January 2014 and expects to mop up Rs.4,000 crore from the exercise.

The spectrum likely to be auctioned in 2014 is more than 400MHz of airwaves for commercial use in 1,800 MHz and 45MHz of airwaves in 900 MHz.

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