50% cut in reserve price of CDMA spectrum

Jan 17 2013, 21:49 IST
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The government had earlier set the reserve price of CDMA airwaves at 36.4 billion rupees ($660 million) per megahertz of spectrum.  (Reuters) The government had earlier set the reserve price of CDMA airwaves at 36.4 billion rupees ($660 million) per megahertz of spectrum. (Reuters)
SummaryAfter 50% reduction, pan-India 5MHz of 800 MHz spectrum will now cost Rs 9,100 crore.

price for CDMA spectrum, compared to the amount paid by operators in 2008, for November auction.

GSM operators body COAI said that the Cabinet decision to reduce CDMA spectrum price will create unlevel playing field in the industry.

"Whole pricing rational is broken down completely and create unlevel playing field becuase now a person who has got 800 Mhz offering CDMA service can definitely under price on the GSM side," COAI Director General Rajan S Mathews said.

He said that GSM players will closely watch hearing of 2G spectrum on February 4 and "if the Supreme Court suo-moto takes congnizance and raises the issue, it will be good. If not, we will definitely be considering that."

The proposed auction plan is expected to fetch government minimum of Rs 45,000 crore.

But Sibal said "market will decide how much revenue we will get."

The Supreme Court has allowed telecom operators, whose 2G licences were cancelled last year, to operate till February 4 when it will hear the 2G spectrum case.

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