Assocham seeks review of Cabinet decision on 3G price

It recommends that the current 5 MHz and the 'swap' spectrum of 15 MHz should be put up for auction on March 5 to achieve a fair and reasonable auction

The base price of 3G spectrum fixed by the Cabinet is not reasonable and needs to be reviewed, industry body Assocham said today.

The Cabinet yesterday decided Rs 3,705 per mega hertz as the reserve price for 2100 MHz band, used for 3G services.

"The reserve price is 35% higher than the reasonable price recommended by the Trai. This is rather unfortunate and the decision needs urgent review," Assocham said.

The chamber also said the government should also put up 15 MHz spectrum in 2100 Mhz band, that will be available after swapping, to auction along with the current 5 MHz in 17 circles.

"Assocham recommends that the current 5 MHz and the 'swap' spectrum of 15 MHz i.e. a total of 20 Mhz should be put up now on 5 March for auction in order to achieve a fair and reasonable auction," it said.

Yesterday Telecom Minister Ravi Shankar Prasad said, "I'm surprised to see a kind of campaign going on spectrum deficit. That is not a fact. The spectrum presently available is being released for auction and in the government's considered view, it is adequate."

He added whatever spectrum shall further become available, shall be released again for auction.

Prasad said 15 Mhz of 3G spectrum will be again put up for auction after DoT gets it from Defence Ministry through swapping.