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Telecom panel recommends hike in auction reserve price

By Reuters

  • 06 Nov 2013
Telecom panel recommends hike in auction reserve price

A government panel on Wednesday recommended raising the reserve price for mobile phone spectrum auctions by 15 per cent more than the price suggested by a federal regulator in the 1800 megahertz band, and by 25 per cent in the 900 megahertz band.

The panel, made up of civil servants, has recommended allowing mergers with a combined market share of up to 50 per cent, a senior government official told reporters.

India plans to conduct its next mobile phone airwave auction in January and has estimated revenue of 110 billion rupees from the sale of airwaves.

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The telecoms regulator has recommended a sharp cut in the auction reserve prices after most carriers stayed away from bidding in the last two auctions saying the reserve price was too high. A ministerial panel and the cabinet will finalise the new reserve prices.

India is in the process of finalising rules for mergers and acquisitions in the telecommunications market of around a dozen players, and the government has said previously it will ease rules to help consolidate the crowded market.

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