Pricing of Spectrum

Cabinet Decision

The Union Cabinet today approved the following :

(i) Finalisation of Reserve Price and Spectrum Usage Charge (SUC) for the Auction of Spectrum in 1800 MHz and 800 MHz Bands, and

(ii) TRAI's recommendations on "Spectrum Management and Licensing Framework" - Decision of Government regarding Pricing of Spectrum.

The Cabinet approved the reserve price of Rs.14,000 crores for 5 MHz pan India in 1800 MHz Band. The Cabinet also approved the recommendation of EGoM for reserve price for 800 MHz band at 1.3 times that of 1800 MHz band. Existing slab rate system for Spectrum Usage Charges (SUC), as recommended by EGoM, as the preferred option has also been approved by the Cabinet.

As recommended by the EGoM, the Cabinet decided to defer the issues related to pricing of spectrum pending ascertainment of the developments/ outcome of the ongoing proceedings before the Supreme Court in the Presidential Reference and that all questions relating to the pricing of Spectrum currently held by Telecom Service Providers and related issues including pricing of contracted spectrum, excess spectrum, prospective/ retrospective pricing be considered thereafter.

The reserve price and SUC are essential for the 2G spectrum auction bid process, which is being implemented expeditiously by the Department of Telecommunications.