EGOM recommends reduced price for 2G

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EGOM recommends reduced price for 2G
An Empowered Group of Ministers (EGoM) have finalized rules for mobile spectrum, and have recommended that the minimum price for airwaves be cut to Rs 14,000-16,000 crore.

This maybe hugely disappointing for mobile phone companies who pitched for reduction of 80% from Rs18,000, lower than suggested by TRAI.

The recommendation has suggested that the price to be set between 55% and 65% of the net present value (NPV) of the spectrum.

"The EGOM discussed three specific issues. We are going to make a specific recommendation on each of these issues to Cabinet so that Cabinet decides on it finally," Sibal told reporters after the meeting, even as he declined to share details.

Following a Supreme Court Order, the government was asked to sell 2G airwaves for the first time in order to revoke all the permits granted during 2008. In February, the Supreme Court had canceled the license of 122 licensees, which involved nine companies.

The sources also said that the Department of Telecom (Dot) has asked to come out with presentation on NPV of the spectrum.

However, last week the panel had decided to allow mobile companies to mortgage airwaves, which will allow them to raise funds from banks for the upcoming auctions.

Read more about: 2g
Story first published: Saturday, July 21, 2012, 11:31 [IST]
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