DoT panel fixes base price of 3G airwaves at Rs 3,899 cr

New Delhi: An internal committee of the Department of Telecom has suggested a base price of 3G spectrum at Rs 3,899 crore per megahertz, 43% higher than the rate recommended by telecom regulator Trai, media reports said.

"The committee is of the view that market determined price of 2010 should be indexed using SBI PLR and 80 percent of that price can be fixed as reserve price for 2100 Mhz band (used for 3G services)," media reports said quoting sources.

Trai had recommended a base price of Rs 2,720 crore per megahertz.

The regulator had said it recommended about 80 percent of mean value of different prices calculated using four methods to compute valuation of 3G spectrum.

These methods include index based price, 0.83 times valuation of 1800 Mhz (2G) spectrum band, producer surplus model (based on net saving of operator after expenditure for providing services) and an approach based on growth in mobile internet usage.

In 2010, the final 3G spectrum rate paid by telecom operators was Rs 3,349.87 crore per megahertz.

The report will be put before the inter-ministerial panel Telecom Commission which is scheduled to meet tomorrow to discuss 3G spectrum auction modalities.