Cabinet approves Rs 3,705 cr per MHz for 3G airwaves

NEW DELHI: Notwithstanding telecom industry’s concern over higher spectrum prices, the Cabinet has approved a reserve price of Rs 3,705 crore per MHz for 3G, which was 36% higher than the amount recommended by the Telecom Regulatory Authority of India (Trai).

"The government earned eight times the reserve price it had set for 3G spectrum in 2010," telecom minister Ravi Shankar Prasad said at a press briefing.

The government is expected to rake in Rs 80,000 crore from the spectrum auction.

The auction will start on March 4 and the participants have to make an upfront payment of 33% of the final bid amount to the government within 10 days of the close of the bandwidth sale.