India's cabinet has approved a reserve price and spectrum usage charges for the auction of 1800 MHz and 800 MHz spectrum. The reserve price for a 5 MHz block of pan-India spectrum in the 1800 MHz band is INR 140 billion and the reserve price for the 800 MHz band has been approved at 1.3 times that of the 1800 MHz band, as per the recommendation of the Empowered Group of Ministers (EGoM). The existing slab rate system for spectrum usage charges, as recommended by the EGoM, has also been approved. The cabinet will consider issues related to pricing of contracted spectrum, excess spectrum, prospective/ retrospective pricing later, as there are still ongoing proceedings before the Supreme Court.
