The Indian government has put a reserve price on 900 MHz spectrum that is 25 per cent higher than that recently recommended by the Telecom Regulatory Authority of India (TRAI).

And the Empowered Group of Ministers (EGoM), a government panel, has set a price for 1.8 GHz spectrum that is 15 per cent higher than that backed by the TRAI.

The EGoM’s decision is in line with the Telecom Commission’s findings published earlier this month. The commission is a Department of Telecommunications committee.

The auction of spectrum currently held by the likes of Vodafone and Bharti Airtel is scheduled for January 2014.

Although the EGoM’s minimum price is substantially more than the regulator’s recommendations, it is still significantly lower than what it set for its unsuccessful November 2012 and March 2013 auctions.

The base price for 900 MHz varies by city and region but has been set at INR3.6 billion ($58 million) per MHz for Delhi, for instance. The reserve price for 1.8 GHz is pan-Indian and is set at INR17.65 billion per MHz.

India’s regulator made its recommendation on minimum pricing in September.

The EGoM also asked TRAI to come up with a reserve price for 800 MHz spectrum.

The earlier decision by the Telecom Commission was greeted by surprise within the mobile industry which argued that Indian operators pay more for their spectrum than their counterparts elsewhere in the world.

Anne Bouverot, director-general of the GSMA, had urged the EGoM to base its final decision on factors that will encourage investment by mobile operators.