NEW DELHI Dec 13 The Indian cabinet approved a
30 percent cut in the reserve price of mobile phone airwaves in
four telecommunication zones, a minister said on Thursday, after
carriers shunned last month's auction in those zones saying the
prices were too high.
The cabinet also approved a ministerial panel's proposal to
set the auction reserve price of more efficient 900 megahertz
band airwaves at twice that of the basic phone airwaves in the
1800 megahertz band, the minister, who did not want to be named,
India is betting on the revenue from phone airwaves auctions
and stake sales in state-run companies to plug its widening
fiscal deficit. The government raised less than a quarter of its
400-billion-rupee ($7.4 billion) target in last month's auction.
The government aims to conduct the next auction during the
current fiscal year ending in March. It also plan to sell 900
megahertz band airwaves in a separate, but simultaneous auction.
($1 = 54.2450 Indian rupees)
(Reporting by Nigam Prusty; editing by Malini Menon)