Markets: Eerie calm

Markets: Eerie calm

it is not clear when market sentiment can change; as in the past, it can be quite sudden.
At a turn and yet not

At a turn and yet not

RBI could be tempted to cut policy rate to support growth at its bi-monthly review.

Cabinet clears spectrum base price that can fetch Rs 48,000 cr

Dec 10 2013, 15:30 IST
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The Cabinet today fixed the minimum price for selling telecom spectrum at up to half the rate set at the previous auction to net at least Rs 48,000 crore in revenue from the sale planned in January. The Cabinet today fixed the minimum price for selling telecom spectrum at up to half the rate set at the previous auction to net at least Rs 48,000 crore in revenue from the sale planned in January.
SummaryThe Cabinet has approved recommendations made by the EGoM on telecom, headed by P. Chidambaram.

Mhz band accepted by EGoM is also 25 per cent higher than what was suggested by the Telecom Regulatory Authority of India (TRAI).

The government has decided to auction 403.2 MHz of 2G spectrum in the 1800 MHz frequency, which at the base price finalised by the Cabinet, amounts to about Rs 36,385 crore.

About 46 MHz of spectrum in the 900 MHz band held by Bharti Airtel, Vodafone and Loop Mobile in Delhi, Mumbai and Kolkata will also be auctioned as their licences are due to expire in the last quarter of 2014.

At the base rate finalised by the Cabinet, the spectrum in the three metros may fetch about Rs 12,300 crore.

Together, the 900 MHz and 1800 MHz band airwaves are valued at about Rs 48,685 crore.

The government has provisioned garnering Rs 40,874.5 crore from spectrum revenue in the Budget, including upfront money from the auction and various fees levied on airwaves used for commercial mobile communications.

Successful bidders, however, will have the option of paying the spectrum price in instalments.

If the entire spectrum is sold at the base price and bidders opt to pay in instalments, the government may get only about Rs 15,000 crore in this fiscal from the auction.

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