The Union Finance Ministry has asked the telecom department to double the floor price for 3G and wireless broadband spectrum. The move can further delay the 3G auction process scheduled for January 16.

The finance ministry has asked to submit fresh proposal to the Cabinet with the desired changes. Two anonymous executives of the telecom companies said that the move would make 3G services more expensive for the consumers. Telecom companies expressed reservations on the fresh move of 3G prices issue.

Ministry of Finance said, "The reserve price may be increased from Rs 2,020 crore to Rs 4,040 crore for a pan-India allocation of two blocks of five MHz of 3G spectrum."

President of ISP Association, Rajesh Charria said, "Not a single standalone internet service provider (ISP) will be able to bid for WiMAX spectrum if the base price is doubled. Even at the current price of Rs 1,010 crore, ISPs had decided to stay away."

Telecom industry majors feel that the 3G auction can not be completed in the regime of UPA government if the auction delays beyond February. It is to be noted that election code of conduct may be imposed by March end in connection with the forthcoming general elections in the country.

The matter may be discussed in the cabinet meeting on Friday. An official said that the proposal of the finance ministry would be taken up on January 7 in the cabinet meeting as Union Communication Minister A Raje is unlikely to attend the meeting on Friday.