TRAI or the Telecom Regulatory Authority of India has suggested a very high base price for the auction of the 2G spectrum. The auction will be open for all the mobile service operators. SMRA method or the simultaneous multiple round auction method will be used for the auctions. The same method was used during 3G auctions that took place in 2010.
1800 MHz spectrum is set at the reserve price of Rs.3,622 crore and the 900 MHz for Rs.7,244 crore. While 700 MHz the price is set at Rs.14,000 crore. Hence 5 Mhz block in 1800 Mhz band is all set to cost at a reserve price of Rs.18,100 crore or over. Rs.3,622.18 crore is the minimum price for pan-India /spectrum.
Uninor said "It is up to the political leadership of India now to ensure that the gains of the past few years of affordable phone calls for India's people are not undone."
On Feb 2 Supreme Court had cancelled 122 telecom licenses that were issued in 2008 and those telecom companies were asked to close down in four months. Those licenses would also be re-distributed in an auction as diected by the Apex Court.