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India to Lower Reserve Prices on Unsold GSM Spectrum

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India's mobile networks will have to pay less for the unsold radio spectrum from the recent GSM license auction after the government agreed to reduce the reserve price by nearly a third.

The Empowered Group of Ministers (EGoM) decided to reduce the price by 30 percent for the unsold radio spectrum in Delhi, Mumbai, Rajasthan and Karnataka.

The second attempt to sell the spectrum is expected to take place in March 2013 in order to fit into the government's current financial year.

The EGoM also decided to auction a block of 900MHz spectrum in Delhi, Mumbai and Kolkata. The reserve price for this spectrum band will be set at double that of the 1800Mhz band due to its better propagation characteristics.

They are still deciding what to do with the CDMA allocated blocks of 800Mhz spectrum after all the bidders dropped out due to the high reserve prices.

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Tags: radio spectrum  India