NEW DELHI: Following the failure of the November 2012 auction for 2G spectrum, the government has decided that the reserve price for 800 MHz band in all service areas will be reduced by 50 per cent from the previous reserve price.

The previous reserve price was approved by the Cabinet in its meeting held on 3 August 2012, following directions of the Supreme Court for fresh auction.

The revision had to be done as no bids were received during auctions held for 800 MHz band (CDMA) for all service areas in November 2012.

The cabinet decided that pricing of spectrum for current spectrum holding in the 800 MHz band (CDMA) by existing operators in the 800 MHz band at the reserve price will hold till auction discovered price is available.

This follows the recommendations of the Empowered Group of Ministers (EGoM).

The above decisions are expected to result in further efficient utilisation of the scarce natural resource of spectrum facilitating proliferation of telecom services in the country.