The empowered group of ministers headed by Union Finance Minister, Pranab Mukherjee, has finally fixed Rs 3500 crore and Rs 1750 crore as a reserve price for 3G spectrum and WiMax bids, resolving the long-standing deadlock over bid prices. The move may stimulate allocation of spectrum to private players to roll out high-end 3G services for high speed internet and telecom service experience.

Now, telecom players, who wish to participate in the bidding, are required to deposit a minimum amount of Rs 3500 crore, which is nearly Rs 500 crore lower than earlier proposed price by the Telecom Ministry.

Telecom Minister Mr. A Raja said: "We hope to complete the auctions within 90 days from Thursday and we expect to get a minimum of Rs 25,000 crore from these auctions."

Meanwhile, telecom players hailed the government's decision, adding that it will stimulate work on the 3G technology.

Bharti Airtel CEO and joint MD Manoj Kohli said: "We welcome the government's decision to expeditiously complete the planned auction of 3G spectrum. We believe 3G will drive the wireless broadband revolution in both urban and rural India, contributing to inclusive growth."