IT ministry go with DoT on 3G price

Differences in the inter-ministerial panel on pricing of next generation, or 3G, mobile telephony spectrum have widened, with the ministries of industry and information technology (IT) rejecting doubling of the fee to Rs 4,040 crore.

This has forced the Department of Telecommunications (DoT) to place all the options before the Cabinet Committee on Economic Affairs (CCEA) for a final call.

According to sources, the Department of Industrial Policy and Promotion (DIPP) and Ministry of IT have supported the reserve price of Rs 2,020 crore as was originally recommended by the DoT.

Last week, the finance ministry had asked the DoT to double the reserve price for pan-India 3G spectrum.

In a note sent to Telecom Secretary Siddartha Behura, the finance ministry had said, “The reserve price may be increased from Rs 2,020 crore to Rs 4,040 crore for a pan-India allocation of two blocks of five MHz of 3G spectrum.”

Recently, the DoT had issued revised schedule for auctioning the 3G spectrum to January 30. As most of the domestic players were getting ready to participate in the bidding process, the inter-ministerial differences now could delay the process, sources said.

Asked whether the DoT may extend the auction date further, sources said it would depend on the CCEA’s decision. In case the reserve price is finalised by the Cabinet by next week, the government would go ahead with the schedule.

Sources in the DoT said that the note for the Cabinet would be finalised in a day or two incorporating the views given by all the ministries and is hoping to take up the matter in the meeting next week.

When asked whether the DoT has rejected finance ministry’s suggestion of doubling the reserve prices, sources said there was no question of rejecting or accepting the view as the CCEA would be taking a final decision.