"BSNL will not participate in the auction," BSNL Chairman and Managing Director R K Upadhyay told PTI.
The government is expecting to raising Rs 45,000 crore from the second round of spectrum sale.
The state-run telecom company will be absent even as new entrants as well as existing telecom operators are expected to participate in the auction in order to get additional spectrum for offering services.
An Empowered Group of Ministers (EGoM) has recommended reducing minimum price for sale of spectrum used by CDMA mobile operators by up to 50% on which Cabinet will take the final call.
The Cabinet, on December 13, 2012, had approved a 30% cut in reserve or base price for the second-generation spectrum in 1800 MHz band that wasn't sold in the auction held in November 2012.