The Cabinet today fixed a minimum or base price of Rs 14,000 crore for the Supreme Court mandated auction of telecom spectrum. The Cabinet, headed by Prime Minister Manmohan Singh, decided to fix a reserve price at Rs 14,000 crores for 5 Mhz pan India in 1800 MHz band.

The Cabinet also approved the recommendation of Empowered Group of Ministers for reserve price for 800 MHz band at 1.3 times that of 1800 MHz band. Existing slab rate system for Spectrum Usage Charges (SUC), as recommended by Empowered Group of Ministers, as the preferred option has also been approved by the Cabinet.

Breifing newsmen Telecom Minister Kapil Sibal said, as recommended by the EGoM, the Cabinet also decided to defer the issues related to pricing of spectrum pending ascertainment of the developments outcome of the ongoing proceedings before the Supreme Court in the Presidential Reference.

Mr. Sibal said, the Cabinet also decided that all questions relating to the pricing of Spectrum currently held by Telecom Service Providers and related issues including pricing of contracted spectrum, excess spectrum, prospective, retrospective pricing are to be considered thereafter.
The reserve price and Specturm User Charges are essential for the 2G spectrum auction bid process, which is being implemented expeditious ly by the Department of Telecommunications.
The apex court had in February this year cancelled 122 licences issued by the then Telecom Minister A Raja in 2008

and asked the government to conduct fresh auctions by August 31.