The ministry of communications and information technology is set to inform the Union Cabinet that it is planning to hike the reserve price for the auctions of the pan-India third generation (3G) spectrum to Rs 3,540 crore and the total number of players per circle to eight.

Currently, the reserve price for the auctions of the pan-India 3G spectrum is Rs 2,020 crore, and the number of players per circle is five.   

According to the Department of Telecommunication (DoT), the hike in the reserve price will ensure that the finance ministry does not put up any fresh roadblocks for the upcoming 3G auctions, which is vital for high-end services such as video conferencing and high speed internet on mobile handsets.
   
The DoT says that increasing the total number of players per circle to eight will help to raise about Rs 40,000 crore.

The decision of the DoT has come when the Union Cabinet is set to consider the proposal for the auction of radio bandwidth for third-generation (3G) mobile services within the next two weeks.

Meanwhile, the DoT has decided to put on hold the allocation of any additional second generation spectrum.