The Empowered Group of Ministers, EGoM has approved that existing players can retain a maximum of 2.5 MHz in prime band spectrum when their current licences expire. However they have to pay a price which will be determined later through auction. Talking to reporters in New Delhi today after the meeting, Telecom Minister Kapil Sibal said that the EGoM has also decided on the issue of merger and acquisitions of companies. The companies will have to pay a market price if they merge or acquire another company which was allocated spectrum at old price of 1,658 crore rupees.

The EGoM, headed by Finance Minister P Chidambaram, took the decision based on the recommendation of the Department of Telecommunications.

AIR correspondent reports that Telecom regulator, Trai recommended that existing operators give up all their spectrum holdings in prime 900 Mhz band when their permits come up for renewal starting November, 2014. The government has in principle approved the Trai recommendation.