A Department of Telecom panel studying Telecom Regulatory Authority of India's proposals for the 2G spectrum sale said that two slots of can be auctioned irrespective of what conditions are attached to the sale of airwave.

Telecom service providers have urged senior officials to increase the number of spectrum slots for auction as an auction of a single slot may lead to very high prices of spectrum, which may in turn may increase rates of telecom services or customers.

The Telecom Regulatory Authority India (TRAI) had earlier recommended auction of only one slot of 5 Mhz spectrum in 1800 Mhz band and later agreed to recommend auction of another slot if a minimum of four bidders take part in the auction of each slot.

Meanwhile, the telecom department (DoT) is asking for an increase of 17 per cent in the base price for 2G spectrum bids above the proposed rate by the telecom sector watchdog, the TRAI.

The move has increased concerns for the telecom sector companies, who were expecting the government to reduce the level of prices or bids recommended by the TRAI. A panel of the DoT that was studying Trai's proposals on spectrum auctions said that the reserve price of second-generation airwaves in the 1800 MHz band should be revised to Rs 4,245 crore per unit.

The proposed price by the TRAI for a similar airwave is Rs 3,622 crore per unit on a pan-indian basis. DoT has also said that it will not accept a proposal to permit service providers to stagger their payments for airwaves won in the auction process.