The Union Telecom and Communications Ministry has declined the proposal of Finance Ministry to double the floor price for 3G and wireless broadband spectrum. Finance Ministry had recommended prices of pan-India 3G spectrum prices at Rs 4,040 crore and WiMAX prices at Rs 2,020 crore..

Department of Telecom (DoT) has reportedly rejected the idea on the ground that it would reduce interest of new players in 3G auction. Foreign players have already shown poor interest in the auction process and the idea to increase floor rates would help to make the bids less competitive, leading the loss of revenue. It would also make 3G services more expensive for customers. It may be recalled that foreign players have already alleged the guidelines as anti-foreign players.

Government has set a target to raise Rs 40,000 crore from 3G auction and it may be impossible to achieve without the involvement of foreign players.

Now, the auctions of 3G spectrum is likely to be deferred as there is demand by some sections to review the 3G policy. The auction is scheduled on January 16 and likely to be held on January 30.