DoT panel suggests Rs 3,646cr/Mhz price for CDMA band

A DoT panel has suggested a base price of Rs 3,646 crore per Mhz for the auction of CDMA spectrum, 17 percent higher than what the regulator Trai has recommended.

Also, the price suggested by an internal panel of Department of Telecom (DoT) is almost equivalent to that of premium 900 Mhz band, which is considered more efficient than other GSM frequency bands.

The Telecom Regulatory Authority of India (Trai) last month recommended a base price of Rs 3,104 crore per megahertz, which was already 15 per higher than the price that the regulator suggested in February this year. 

"The DoT committee has agreed to the view of TRAI that rise in demand of data services and projected subscribers growth cannot be ignored. The committee has applied a factor of 0.8 on TRAI suggested value that gives reserve price of Rs 3,646 crore per Mhz on pan-India basis," an official source said.

The views of the committee are likely to be placed before the inter-ministerial panel Telecom Commission, which is scheduled to meet on December 8.

The government has proposed to auction CDMA spectrum in 11 service areas of Maharashtra, Jammu and Kashmir, Mumbai, Andhra Pradesh, Haryana, Madhya Pradesh, Punjab, UP East, Assam, Bihar and Himachal Pradesh.

The reserve price recommended by Telecom Commission will be placed before Cabinet for final decision, sources said. The CDMA spectrum auction are proposed to held in February along with auction of spectrum in 900 Mhz and 1800 Mhz bands. DoT also wants to auction spectrum in 2100 Mhz that are currently being used for 3G services.

Government expects to garner a minimum of Rs 9,533 crore from 800 Mhz (CDMA), 900 Mhz and 1800 Mhz. As DoT's internal estimates, government can get another Rs 5,000 crore from auction of 3G spectrum.

The base price for these spectrum bands is yet to be finalised for the upcoming auction in February.