Cabinet likely to take up 3G spectrum pricing tomorrow

The Cabinet is likely to consider tomorrow the reserve price for spectrum auction in the 2100 MHz band, which is being used for providing 3G mobile services.
The inter-ministerial panel Telecom Commission has suggested a base price of Rs 3,705 crore per megahertz as 3G spectrum base price for the upcoming auction, scheduled for March 4.
"Cabinet is likely to take up the pricing of spectrum in 2100 megahertz (MHz) band tomorrow," said a source.
The base price suggested by the Commission is around 11 per cent higher than what telecom firms paid for in the 2010 sale. It is also 36 per cent higher than sectoral regulator TRAI's recommendation of Rs 2,720 crore per Mhz.

The Commission, headed by Telecom Secretary Rakesh Garg, has considered sale of only 5 MHz of 3G spectrum while determining the price.
The Defence Ministry has agreed to free 5 Mhz of 3G spectrum as of now.

Last week, the Cabinet had approved swapping of 15 MHz of 3G spectrum between Defence and the Telecom Ministry. However, government will be able to provide it after completion of the harmonisation process.
The Telecom Ministry has proposed to exchange 15 Mhz spectrum it holds in 1900 Mhz band with same quantum of radiowaves held by Defence in 2100 Mhz.
The Cabinet has asked ministries involved in the process to complete harmonisation within a year.