The cabinet on 5th January, 2015 has approved the largest ever telecom spectrum auction to be held in February, 2015. The central government is expected to generate revenue worth Rs. 64,840 crore towards the sale of 380.75 megahertz of second generation (2G) spectrum. These stretches in three bands-; the premium 800 MHz ,900 MHz and 1800 MHz. Spectrum in 2100 MHz may also be auctioned simultaneously if Defence Ministry vacates it.

The Cabinet has also approved the reserve prices of these bands of spectrum as follows-:

Rs.3,646 crore pan India per MHz in 800 MHz.

Rs. 3,980 crore for 900 MHz band pan India excluding Delhi, Mumbai, Kolkata and J&K.

Rs. 2191 crore pan India excluding Maharashtra and West Bengal in 1800 MHz.

How ever the reserve price for the 2100 MHz has not been announced. But it is expected to garner Rs.16,000 crore in the auction.

Now the question is as what the government is going to do with the proceeds of a whooping Rs.80,840 crore. Whether the government will utilize the amount for development of the telecom sector in the country or give a portion to the crisis ridden BSNL to bail it out? The answer is a big ‘No’ as the government has already made it clear that the amount would be utilized for its fiscal deficit.!