It was widely held then that some operators had used the layers of government to lobby their case for a higher number of slots to be put on auction. The issue is simple: the government needs to decide the reserve price for auctions based on the number of slots. Initially, DoT had proposed a pan-India reserve price of Rs 2,020 crore for five slots. The finance ministry suggested Rs 4,040 crore. A middle ground was found at Rs 3,510 crore for five slots.

However, the eGoM would now examine whether auctions can be conducted for a higher number of slots, as spectrum in certain circles can accommodate up to 12 operators. However, if more slots are put on the block, the reserve price has to be set higher, even upwards Rs 4,040 crore, as with about 6-7 operators in each circle, bidders tend to quote a low figure in a surplus situation.

There’s also the view that all spectrum should not be auctioned in one go. Instead the government can auction five slots and sell the rest two years down the line when the fourth generation technology (long-term evolution) comes, which would fetch the government Rs 100,000 crore.