A technical committee under the Department of Telecommunications (DoT) has suggested the base price of spectrum in the 800 MHz band to be Rs 36.46 billion. This price is 14.4 per cent higher than Rs 31.04 billion that was recommended by Telecom Regulatory Authority of India (TRAI) in February 2014. The committee has increased the price as it is of the view that the rise in demand of data services and projected subscribers growth should be taken into account for the calculation of the base price.

Further, the committee has recommended a 15-20 per cent higher reserve price for spectrum in the 1800 MHz and 900 MHz bands than that suggested by the telecom regulator. TRAI had recommended a price of Rs 21.38 billion for spectrum in the 1800 MHz band in 20 circles and Rs 30.04 billion for spectrum in the 900 MHz band in 18 circles.

The committee’s proposal will now be put before the Telecom Commission for final approval. The government is targeting Rs 95.33 billion from sale of spectrum in the upcoming auction.