The Department of Telecommunications (DoT) is planning to recommend a 17 per cent increase in the base price for 2G spectrum over the rate proposed by the Telecom Regulatory Authority of India (TRAI).

The move is likely to further upset operators who have registered their strong protests over the TRAI?s recommendations of high reserve price of 2G auction and refarming of the spectrum.

A DoT panel studying TRAI?s proposals on spectrum auctions has concluded that reserve price for the 2G spectrum in the 1800 MHz band should be revised to Rs 42.45 billion per unit on a pan-India basis. Earlier, in its set of recommendations on fresh auction of 2G spectrum – TRAI has proposed a base rate of Rs 36.22 billion per unit.

Meanwhile, DoT panel has rejected the telecom regulator?s proposal to allow operators to stagger their payments for spectrum acquired through the bidding process. DoT is of the opinion that the mobile operators must not be allowed to mortgage spectrum for raising funds from financial institutions.

The Telecom Commission will take a decision regarding DoT?s recommendations in a meeting that is going to be held on May 24, 2012. The Commission will communicate its decision to the Empowered Group of Ministers on spectrum, headed by Pranab Mukherjee.. The group has been tasked with the responsibility of finalising the guidelines for the auctions of 2G spectrum vacated due to cancellation of 122 2G licenses by the Supreme Court in February 2012.