2G Spectrum pricing and allocation has seen considerable controversy between DoT with TRAI, Finance Ministry and cable operators.
A DoT official said the panel's main task is to work out a practical, revenue-generating and amicable solution on these two issues.
The panel, headed by DoT's Additional Secretary Subodh Kumar is expected to recommend an appropriate auction mechanism for additional spectrum, said a DoT circular.
Telecom engineering Centre, which had drawn up the subscriber threshold limit for acquiring spectrum beyond 4.4 Mhz is also a member of the committee.
DoT and Finance Ministry have been at loggerheads over pricing spectrum with the latter wanting higher charges.
The Finance Ministry has been pushing for auctioning 2G spectrum on the grounds that the price formula suggested by DoT was based on spectrum charges decided in 2003.
It has concluded that for a pan-India operator, the circle fee fixed at Rs 357 crore per MHz should be inflated by a multiple of 3.5 times reflecting the growth in revenue per MHz between 2003 and 2008.
DoT recently allocated 120 ue per universal access service licences (UASL) for Rs 8,986 crore.
The Finance Ministry has placed the real value closer to Rs 31,452 crore.
DoT is convinced that the fee structured proposed by it would raise more than Rs 10,000 crore for the national exchequer.
It also cites legal problem in going for auctioning 2G spectrum which would require license guidelines modifications.
