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The Cabinet may consider on Wednesday the reserve price for spectrum auction in the 2100 MHz band, which is being used for providing 3G mobile services.

The inter-ministerial panel Telecom Commission recommended a base price of Rs 3,705 crore per megahertz 3G spectrum base price for the upcoming auction which is scheduled on March 4.

The base price, which advised by the Commission is around 11 per cent higher than what telecom companies paid during the 2010 sale. It is also 36 per cent higher than the sectoral regulator TRAI's recommendation of Rs 2,720 crore per Mhz.

The Commission, headed by Telecom Secretary Rakesh Garg, has considered sale of only 5 MHz of 3G spectrum while determining the price.

The Defence Ministry has agreed to free 5 Mhz of 3G spectrum as of now. Last week, the Cabinet had approved swapping of 15 MHz of 3G spectrum between Defence and the Telecom Ministry. However, government will be able to provide it after completion of the harmonization process.

The Telecom Ministry has proposed to swap 15 Mhz spectrum it holds in 1900 Mhz band with same quantum of radio waves held by Defence Ministry in 2100 Mhz.

The Cabinet has asked ministries involved in the process to complete harmonization within a year.

-Kannamsai