DoT to announce base price next week for third round of spectrum auction

"Spectrum prices will be decided next week," Telecom Secretary M F Farooqui told reporters after meeting Department of Economic Affairs Secretary Arvind Mayaram.

The inter-ministerial panel Telecom Commission was to take a call on spectrum Tuesday but the meeting was cancelled.

Telecom regulator TRAI has recommended up to 62 percent cut in base price for premium spectrum in Mumbai, Delhi and Kolkata service areas. Vodafone holds it in all the three metros, Airtel in two and by Loop in Mumbai.

Telecom Regulatory Authority of India has recommended reduction of about 37 percent in base price of 2G spectrum that was freed from the cancellation of 122 telecom licences by the Supreme Court in February 2012 in the 2G spectrum allocation case.

The regulator, however, has not recommended the auction of CDMA spectrum which saw only one buyer in March 2013 auction.

According to sources, the Finance Ministry representative in the Commission has asked for indicative base price for all CDMA and premium 2G spectrum in all circles that were not incorporated in recommendations made by sector regulator TRAI.

However, it could not be officially confirmed. The next date of the meeting could not be ascertained.

TRAI has recommended pan India base price for 2G spectrum freed from cancellation of licences in February 2012 and for premium radiowaves in 900 Mhz band for Delhi, Mumbai and Kolkata service area.

The Telecom Commission at its last meeting had asked to seek prices of all the set of radiowaves as sought by the Empowered Group of Ministers on telecom, headed by Finance Minister P Chidambaram.

The telecom regulator, however, in its reply last week did not add price for CDMA in service area where they were proposed to be placed for auction.

TRAI recommendations have faced criticism by CDMA players who allege that the regulator has favoured incumbent 2G players like Airtel, Vodafone, Idea and Loop.

The panel was also expected to finalise guidelines for the sector's first mergers and acquisition policy which is expected to pave way for consolidation in the sector and reduce the total number of players.