DoT may go by regulator's views on 3G spectrum

The communications ministry is understood to be in favour of telecom regulator Trai's broad recommendations on the auctioning route to price spectrum for the 3G mobile services.

"We hopefully will announce the 3G spectrum policy by the end of this month. We are considering the Trai proposals and I don't think there will be any major divergence in the policy," Telecom Secretary Dinesh Mathur said on the sidelines of an International Telecommunication Union function.

If the Trai's views are accepted by the DoT, then an operator seeking 3G spectrum on a pan India basis will have to pay a minimum of Rs 1,400 crore. There are up to six mobile service providers in category A circles.

If it is assumed that only four players would go for 3G spectrum in a circle, then the government would collect a minimum of Rs 5,400 crore. Government-owned BSNL and MTNL would also be required to bid for spectrum.

The industry is divided on the issue of auctioning and pricing of spectrum. Tata group supremo Ratan Tata had offered to pay Rs 1,500 crore as entry fee for 3G spectrum.

Mathur dodged the specific question of whether the DoT has accepted Trai's recommendations of auctioning the 3G spectrum, he said, "I can't answer that... You will have to wait till the policy comes out."

Trai's 3G spectrum proposals had two major issues -- the 3G spectrum should be allotted through an auction system with a reserve price and the reserve price is Rs 80 crore for category A circles (Mumbai and Delhi), Rs 40 crore for category B circles (Chennai and Kolkata) and Rs 15 crore for category C circles.