Finance Ministry's hopes of garnering about Rs 40,000 crore from the sale of spectrum for 3G mobile services may be dashed as most of the operators are unlikely to bid beyond the reserve price of Rs 2,200 crore.
Betraying differences within the department on foreign companies bidding for 3G spectrum, Minister of State for Communication Jyotiraditya Scindia feels the current procedure may impede the entry of American firms.
The Department of Telecom has ignored Finance Ministry's suggestion to raise the reserve price of spectrum for 3G mobile services to Rs 2,500 crore, saying the auction process would discover the best price.