Press Information Bureau

Government of India

Cabinet

17-January-2013 14:00 IST

The Union Cabinet today approved the following:

(i) Finalisation of Revised Reserve Price for the Auction of Spectrum in 800 MHz band (CDMA) for all service areas, since no bids were received during auctions held in November, 2012

(ii) Pricing of Spectrum for current spectrum holding in the 800 MHz band (CDMA) by existing operators in the 800 MHz band at the reserve price till auction discovered price is available.

After considering the recommendations of the Empowered Group of Ministers (EGoM), the Cabinet approved, among others, the following:

(i)  Reserve price for 800 MHz band in all service areas be reduced by 50 percent from the previous reserve price as approved by the Cabinet in its meeting held on 3rd August, 2012;

(ii) As regards payment for spectrum currently held in 800 MHz band by existing operators in all service areas where auction determined price is not available, it has been decided that such operators be charged at the revised reserve price, w.e.f. 01.01.2013 on the applicable quantum of spectrum, till such time as auction determined price becomes available, and that after the auction price becomes available, the earlier payment made on the basis of reserve price would be adjusted against the amount actually due.

The above decisions are expected to result in further efficient utilisation of the scarce natural resource of spectrum facilitating proliferation of telecom services in the country.

****

SC/SK

Reserve price reduction for 800 MHz spectrum: revised interim pricing applied to existing holders pending auction price discovery. The Cabinet approved reducing the reserve price for auction of 800 MHz (CDMA) spectrum across all service areas and directed that existing operators be charged at the revised reserve price for their current 800 MHz holdings where auction-determined prices are not available; such interim payments will be adjusted against the auction-determined price once available.