The Union Cabinet of India has approved the largest ever telecom second generation (2G) spectrum auction that is targeted to fetch at least Rs.64,840 crore from the sale next month. The frequency includes 800 MHz, 900 MHz and 1800 MHz bands at a reserve price set by the Telecom Commission. The previous auction that took place in February 2014 had earned the Centre close to Rs.62,162 crore.
According to the official statement, the reserve price approved per MHz pan-India is,
- Rs.3,646 crore in 800 MHz band.
- Rs.3,980 crore for 900 MHz (excluding Delhi, Mumbai, Kolkata, and Jammu and Kashmir).
- Rs.2,191 crore in 1800 MHz band (excluding Maharashtra and West Bengal).
- The reserve price for 2,100 MHz was not announced.
Telecom Minister Ravi Shankar Prasad said the government is intended to auction third generation or 3G spectrum in 2,100 MHz simultaneously. He also added that the main aim is to provide adequate spectrum, prevent hoarding as well as fair competition, improve telecom services for consumers and adequate revenue for government.