Cabinet finalises reserve price of 1800 Mhz spectrum

"The decisions are expected to result in further efficient utilisation of the scarce natural resource of spectrum, facilitating proliferation of telecom services in the country," said an official release.

An inter-ministerial group on Dec 7 recommended 30 percent reduction for four circles - Delhi, Mumbai, Karnataka and Rajasthan - which were left unsold in the auction conducted last month.

The Empowered Group of Ministers also decided to auction spectrum of 900 Mhz in Delhi, Mumbai and Kolkata with the sale of 1,800 Mhz.

Last month's 2G spectrum auction only garnered Rs.9,407 crore from a minimum expected Rs.28,000 crore target.

The reason, industry said, was the high reserve price fixed by the government.

In the last auction, the reserve price for the four unsold circles for 1,800 Mhz was Rs.693.06 crore for Delhi, followed by Rs.678.45 crore for Mumbai, Rs.330.12 crore for Karnataka and Rs.67.08 crore for Rajasthan circle.