The government is confident that spectrum auction next month will be successful and meet the revenue target of Rs. 40,000 crore.
“We are confident that all spectrum up for auction will be sold,” Telecom Secretary M.F. Farooqui said at a press conference on a two-day India Telecom-2013 summit that begins on December 5.
Significantly, post-2G scam, two auctions failed to attract companies and garner the projected revenues. For the January auction, the DoT has set a total revenue target of Rs. 40,874.5 crore, including auction amount, one-time spectrum charge and annual regular licence fee.
Telecom experts and mobile companies fear the higher spectrum price might hinder the government’s projected target.
The Telecom Regulatory Authority of India (TRAI) had recommended up to 60 per cent cut in the auction reserve price in the 900 MHz band in the Delhi, Mumbai and Kolkata circles. It suggested a 37 per cent cut in the reserve price in the 1800 MHz band.
Later, the Telecom Commission had suggested hiking the reserve price of pan-India spectrum by 15 and 25 per cent higher in important circles over what the TRAI had suggested. The Empowered Group of Ministers has approved the price recommended by the Commission.
