NEW DELHI, INDIA: Differences over the 3G spectrum auction reserve price between the the Department of Telecom and the finance ministry is being sorted out to push the bidding in a faster pace.

The communications ministry is set to tell the Union Cabinet that it is open to increasing the reserve price for the auctions of pan-India third generation (3G) spectrum to Rs. 3,540 crore and auction up to eight slots of 3G spectrum, says a report from The Economic Times.

As per the existing 3G policy unveiled by the communications ministry late last year, the reserve price for pan-India 3G spectrum is Rs. 2,020 crore and accommodating five players per circle.

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The department of telecom is of the view that hiking the reserve price for these airwaves will ensure that the finance ministry does not put up any fresh roadblocks for the upcoming 3G auctions.

The move is aimed at addressing the concerns of the finance ministry which fears that a lower base price would result in the government failing to meet its targets of raising about Rs. 40,000 crore for these auctions.

Increasing the number of slots will lead to higher revenues from the auctions as this will enable more Indian operators and also players from abroad to bag these airwaves. At the same time, the DoT in its note to the Cabinet will also state that even as it open to hiking the reserve price, it prefers to retain the base price at 2,020 crore as specified under the existing 3G policy.