As expected Telecom regulator TRAI on Monday recommended on Monday a pan-India reserve price of Rs. 1,496 crore per MHz in the 1800 band for the upcoming auction.

TRAI recommended a reserve price of Rs. 288 crore per MHz for Delhi, Rs. 262 crore for Mumbai and Rs. 100 crore for Kolkata in In the 900 MHz band.

Trai has said that for auction of spectrum in 1800 MHz band, the block size should be of 2 x 200 KHz each and the existing licensee will have to bid for a minimum of 3 blocks. A new entrant will be required to bid for a minimum of 25 blocks of 2 x 200 KHz each.

The government got a tepid response in auctions held in November last year and March this year which prompted it to ask Trai to work out fresh reserve price to get greater response. Most of the operators had blamed the higher reserve price for the auction fiasco.

The move will benefit top companies like Vodafone and Airtel whose licences would expire in 2014.

TRAI said all spectrum allocated through auction should henceforth be charged at a flat rate.