Telecom Commission rejects Trai’s proposal on 3G pricing

New Delhi: The inter-ministerial Telecom Commission met today to decide on 3G spectrum pricing but sent back telecom regulator Trai's suggestions for a review.

Trai had recommended Rs 2,720 crore pan-India per megahertz reserve price but the commission felt that it is not adequate and prices could be kept higher.

Meanwhile, an internal committee of the Department of Telecom (DoT) is also understood to have suggested a base price of Rs 3,899 crore per megahertz for the 3G spectrum, which is about 43% higher than the rate recommended by Trai.

Trai will now re-consider the matter and will send its recommendations back to the commission in about a fortnight.

The government will auction at least 5 MHz of 3G spectrum along with the sale of airwaves in the bands of 800 MHz, 900 MHz and 1,800 MHz in the upcoming sale in February, which would likely fetch at least Rs 80,000 crore at the base price.

The cabinet has approved a reserve price of Rs 3,646 crore for the 800 MHz CDMA band; Rs 3,980 crore (excluding Delhi, Mumbai, Kolkata, and J&K) for the 900 MHz band; and Rs 2,191 crore (excluding Maharashtra and West Bengal).

for the 1,800 MHz band.