India's Empowered Group of Ministers (EGoM) on spectrum has reduced the base price for spectrum left unsold in the recent auction by 30% percent. The price cut applies to the areas Delhi, Mumbai, Karnataka and Rajasthan. The ministers also approved the Department of Telecom's plan to sell these airwaves along with a portion of spectrum held by incumbent operators before 31 March, reports The Economic Times. The government failed to attract even a single bid for the 2G airwaves in the 1800 MHz band in these four regions in the recent auction. It plans another auction before the financial year ends in March 2013, in which it will offer the unsold 2G airwaves in the four regions, as well as spectrum held by incumbents in the 900 MHz band in Delhi, Mumbai and Kolkata. The EGoM did not take a decision on the pricing of CDMA spectrum in the 800 MHz band. The inter-ministerial panel will seek the Cabinet's approval of the reduced base price. However, mobile operators have already warned that there will be no takers for the airwaves in these four regions despite the 30 percent price cut. The other spectrum in the 900MHz band is being refarmed ahead of the existing licences expiring in 2014.
