The government has formed a nine-member empowered group of ministers (EGoM) to be headed by the finance minister Pranab Mukherjee to look into issues related to 3G spectrum auction. The key issues that need to be tackled include fixing the reserve price for 3G and Wi-Max spectrum and the number of players to be given licences in each circle for the two technologies. The EGoM has also been asked to specify the spectrum usage charges and other annual administrative fees that successful bidders will be required to pay. It will also finalise the fee to be paid to Rothschild, the company appointed to conduct the 3G auctions.

Meanwhile, the 3G spectrum auctions seem likely to be postponed to 2010, since the government may face difficulty in raising its targeted revenue of Rs 350 billion from the auctions in the current recessionary environment.