Raja refers matter of 3G slots to FinMin

Telecom Ministry has referred the matter of number of 3G spectrum slots in each circle to the Finance Ministry for a wider view.

Sources said Telecom Minister A Raja wants to consult the Ministry of Finance (MoF) before taking a decision on the number of 3G slots for each circle. The response of the FinMin is expected shortly.

The reserve price for pan-India 3G auctions would be Rs 2,020 crore.

BSNL and MTNL, the state-run companies, have already been given a slot each in Chennai and Delhi, respectively. As per the guidelines, in each circle five operators would be allotted the 3G spectrum and five more operators are expected to be allotted the spectrum on a later date.

Currently, 60 Mhz of the 3G spectrum is available. Off late there are indications from the DoT that the number of players could be restricted up to five per circle, including BSNL and MTNL. This leaves out three private players in a circles.

If this happens, it would be a drift from a decision announced by Raja in August, which allows five to 10 operators per circle or service area for 3G services, that enable faster data downloads via mobile phones.

Operators fear of high bidding price for lesser number of slots. The Telecom Regulatory Authority of India (Trai) had suggested that five 3G licences of five Mhz each be given through the auctioning route.