TC fixes 3G spectrum price at Rs 3,705 cr

New Delhi: The Telecom Commission, the highest decision-making body of the Department of Telecom, has kept the 3G spectrum price at Rs 3,705 crore for one MHz, Which is 36% higher than the price recommended by telecom regulator Trai.

The Union Cabinet is likely to meet this week to take a final call on the 3G pricing. The government is expected to earn Rs 18,500 crore for a block of 5 MHz of airwaves in the 3G band across 17 circles.

The government is drawing flak from the industry to put up for auction just 5 MHz of airwaves. The industry says that the government is creating artificial scarcity of spectrum.

Trai had recommended a base price of Rs 3,408 crore a MHz in the previous 3G spectrum auction round in 2010, but this time had reduced the suggested rate by 22 per cent.

The government will put up for auction 800, 900 and 1800 MHz bands in February. It is expected to garner a total revenue of Rs 80,000 crore to Rs 1 lakh crore from the auctions.