The Department of Telecommunications (DoT) has recommended the Ministry of Communications and Information Technology to increase the reserve auction price for pan-India 3G spectrum. The DoT’s recommendation will shortly be communicated to the Union Cabinet by the ministry of communications.

Currently, the reserve auction price for pan-India 3G spectrum is fixed at Rs 2,020 crores, and the number of players per circle is fixed at five. Looking at the earlier pricing of a minimum Rs 4,040 crores proposed by the finance ministry, the DoT is recommending increasing the reserve auction price to Rs 3,540 crores and increasing the number of players per circle to seven/eight.   

The DoT feels that the increase in reserve auction price for pan-India 3G spectrum will ward off any fresh obstacles by the finance ministry. According to the DoT, the increase in the reserve auction price and the total number of players per circle will help the government to achieve revenue target of Rs 40,000 crores from these auctions.

The DoT is recommending the hike in the reserve auction price for pan-India 3G spectrum because of the opposition saying the government auctioning the new telecom licenses in cheaper prices. According to DoT, the hike in the reserve auction price will appease the opposition and will consequently help in speeding up the auctioning process of 3G spectrum.