The government is considering an entry fee of Rs 2.5 billion per metro circle for allocation of 3G spectrum. For Category B circles, the fee is likely to be around Rs 1.5 billion. DoT, in principle, supports the pricing of 3G spectrum, but it may not agree to such high prices.

The finance ministry is open to DoT’s proposal to cap spectrum charges at 4 per cent of the AGR. It may also accept special dispensation for further reduction of spectrum charges for rural areas.