The Indian government wants to raise INR648.4 billion ($10 billion) from its forthcoming auction of spectrum in the 800 MHz, 900 MHz and 1.8 GHz bands.
The government expects to realise a quarter of this sum — or INR160 billion — in the current financial year which ends in March, it said in a statement.
The country’s federal cabinet also approved the reserve price for the contest, which is due to take place in February.
The reserve price is set at INR36.46 billion per MHz for the 800 MHz band, INR39.8 billion per MHz in 900 MHz (excluding Delhi, Mumbai, Kolkata and Jammu & Kashmir where frequencies are unavailable) and INR21.91 billion per MHz in the 1.8 GHz band (excluding Maharashtra and West Bengal).
The government hopes the proceeds will boost its financial position by maintaining existing fiscal deficit targets.
Details for the sale of frequencies in the 2.1 GHz band will be announced at a later date, although the actual auction may occur at the same time as the other bands.
A total of 380.75 MHz in the 800 MHz, 900 MHz and 1.8 GHz bands will be on offer, breaking down into 103.75 MHz in 800 MHz band across all service areas, 177.8 MHz in 17 service areas in the 900 MHz band and 99.2 MHz in 15 service areas in the 1.8 GHz band.
Spectrum winners have the option of paying their fees upfront or deferring a portion for later payment although the latter option carries conditions.