In a development that could delay start of next generation 3G mobile telephony, the finance ministry today asked the Department of Telecom (DoT) to double the reserve price for pan-India 3G spectrum to Rs 4,040 crore.
In a note sent to Telecom Secretary Siddartha Behura, Ministry of Finance said, "The reserve price may be increased from Rs 2,020 crore to Rs 4,040 crore for a pan-India allocation of two blocks of five MHz of 3G spectrum."
The finance ministry has asked DoT to modify the note incorporating revised prices before bringing it to the Cabinet Committee on Economic Affairs (CCEA).
DoT officials, however, expressed concern saying any change in the norms with regard to reserve price of 3G spectrum may require telecom regulator Trai's nod.
Similarly, the finance ministry has also asked to double the reserve price for wireless broadband services, known as WiMAX, to Rs 2,000 crore for pan-India allocation. DoT had recommended Rs 1,000 crore for the same.
Early this week only, DoT had issued revised schedule for auctioning the 3G spectrum and as most of the domestic players were getting ready to participate in the bidding process, the finance ministry's intervention could delay the process.
Sources said the finance ministry has also questioned the rationale of limiting the auction of only four slots of spectrum in each circle.