Cabinet okays Rs.14,000 crore spectrum reserve price (Lead)August 3rd, 2012 - 10:01 pm ICT by IANS
New Delhi, Aug 3 (IANS) The cabinet Friday approved Rs.14,000 crore as the reserve price for the 2G spectrum auction fixed by the Empowered Group of Ministers (EGoM) on telecom, a price lower than the one set by the sector regulator.
“The Cabinet approved the reserve price of Rs.14,000 crore for 5 MHz pan India in 1800 MHz band. The cabinet also approved the recommendation of EGoM for reserve price for 800 MHz band at 1.3 times that of 1800 MHz band,” Communications Minister Kapil Sibal told reporters after the cabinet meeting.
“Existing slab rate system for Spectrum Usage Charges (SUC), as recommended by EGoM, as the preferred option has also been approved by the Cabinet,” he added.
The minister said Friday’s decision signalled that India meant business and added that the EGoM would meet Monday to decide on the auction schedule.
Last month, the EGoM had recommended the reserve price to the cabinet which is lower than what the sector regulator has suggested for the 2G spectrum auction.
The Telecom Regulatory Authority of India (TRAI) had recommended a reserve price of Rs.18,000 crore.
Justifying the high price which has been highly opposed by the operators, Sibal said the terms of payment were “pathbreaking”.
“Now the spectrum has been allowed to be mortgaged with the banks who will themselves deal with it.”
The Supreme Court Feb 2 ordered cancellation of 122 licences including those of Uninor, Sistema Shyam Teleservices, Loop Telecom, Etisalat DB, Videocon, Idea Cellular and STel and asked for redistribution of these licences though an auction with a deadline of Aug 31.
All questions relating to the pricing of spectrum currently held by operators and related issues including pricing of contracted spectrum, excess spectrum, retrospective pricing will be considered later.
Meanwhile, Uninor urged the government to do everything to conduct the auctions within the Aug 31 deadline.
- Cabinet okays Rs.14,000 crore as spectrum auction base price - Aug 03, 2012
- TRAI sets high base price for 2G auction, operators cry foul (Lead) - Apr 23, 2012
- Government wants 2G auction deadline extended to November - Aug 07, 2012
- EGoM on 2G spectrum deferred - Jun 21, 2012
- EGoM to decide on spectrum pricing Thursday - Jun 20, 2012
- No decision on 2G pricing, EGoM favours refarming spectrum - Jun 05, 2012
- Telecom tariffs to rise 37 to 49 paise at Rs.1,400 crore reserve price: COAI - Aug 06, 2012
- EGoM defers decision on one-time spectrum fee issue - Jul 24, 2012
- Reserve price of spectrum major concern: COAI - Jun 30, 2012
- EGoM to recommend spectrum price, but cabinet to take call - Jul 20, 2012
- Telecom EGoM to recommend lower reserve price to cabinet for approval (Lead) - Jul 20, 2012
- Government for extending 2G auction deadline to November (Lead) - Aug 07, 2012
- EGoM on telecom approves spectrum mortgaging (Lead) - Jul 12, 2012
- 2G spectrum base price decision deferred till Friday (Lead) - Jul 18, 2012
- EGoM on telecom approves spectrum mortgaging - Jul 12, 2012
Tags: auction schedule, cabinet meeting, etisalat, feb 2, idea cellular, kapil sibal, loop telecom, New Delhi, preferred option, retrospective, slab, spectrum auction, spectrum usage, stel, telecom regulatory authority, telecom regulatory authority of india, teleservices, trai, usage charges, videocon