Sibal meets FM on spectrum pricing and refarming

Communications and Information Technology Minister Kapil Sibal met Finance Minister Pranab Mukherjee today, along with Home Minister P Chidambaram, to discuss the issue of spectrum pricing and refarming.

Telecom secretary R Chandrashekhar was present. It is learnt there was an agreement on refarming, which means taking 900 MHz spectrum being held by incumbents including Bharti Airtel, Vodafone and Idea Cellular and redistributing through auction.

The government is also planning to charge companies for holding excess spectrum beyond contracted limits.

An Empowered Group of Ministers (EGoM) to discuss the reserve price for the upcoming 2G spectrum auction is likely to happen towards the end of this month.” No date has been decided for the EGoM. It will be decided shortly and pricing will be discussed there,” Chidambaram said..

The EGoM had already finalised broad modalities for the auction, including the schedule and the quantum of airwaves to be sold, earlier this month.

It, however, put off the decision on a base price for the spectrum to be auctioned.

According to Supreme Court directive, the government has to conduct 2G spectrum auction by August 31, after its order for cancellation of 122 licences issued after January 2008.