As if TRAI proposals on 2G spectrum auction which seek to hike the reserve price many fold is not enough, the telecom department (DoT) is leant to have suggested a further 17% increase in the base price for 2G spectrum bids, Economic Times reports.

The newspaper has quoted a senior official quoted to say that a DoT panel studying Trai's proposals on spectrum auctions has concluded that reserve price for second generation airwaves in the 1800 MHz band should be revised to Rs 4,245 crore per unit (on a pan India basis), said a senior official. Trai has proposed a base rate of Rs 3,622 crore per unit.

In another development the DoT panel has also rejected the regulator's proposal to allow mobile phone companies to stagger their payments for spectrum bagged through the bidding process. It is also of the opinion that mobile phone companies must not be allowed to mortgage spectrum to raise funds from financial institutions, the newspaper said, The Department of telecommunications (DoT) will discuss and analyse the issues arising out of TRAI’s recommendations on the spectrum auction on May 24.

A committee in the DoT will study these and then they (proposals) will be placed before the Telecom Commission and a view will be taken.

The telecom regulator in its reply to the government had defended the base price for the 2G spectrum auction at Rs 3,622 crore per MHz in the 1,800 MHz band.