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EGoM Sets 20% Lower Base Spectrum Price; CDMA Spectrum To Cost 1.3 Times More

The Empowered Group of Ministers (EGoM), the minister panel responsible for finalizing rules for the upcoming 2G spectrum auction, has recommended a reserve price of Rs 14,111 crore and Rs 15,111 crore for a block of 5 MHz of spectrum in the 1800 MHz band on a pan-India basis, reports The Economic Times. This reserve price is around 20% lower than the reserve price suggested by the TRAI, which was Rs 18,100 crore and translates to Rs 2822 crore per MHz and Rs 3022 crore per MHz of GSM spectrum in the 1800 MHz band. The panel has also recommended that the minimum base price for  CDMA spectrum in the 800MHz band should be fixed at 1.3 times of the minimum base price fixed for GSM spectrum, as indicated by the report. This translates the reserve price to Rs 18,344 crore and Rs 19,644 crore for a block of 5MHz of spectrum in the 800MHz band and to Rs 3668 crore per MHz and Rs 3928 crore per MHz of CDMA spectrum in the 800 MHz band. The report also states that the minister panel has apparently provided the union cabinet an option to keep the spectrum usage charge at 5% of the operator's annual revenues or charge them as per the current rules which ranges between 2-7% depending on the spectrum quality and whether the operator has 3G spectrum in the country. GSMA Wants Reserve Price Further Lowered The GSMA stated that it believes the price range recommended by the Empowered Group of Ministers is…

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