The 700-Mhz frequency band is considered to be one of the most valuable slots for telecom services as most of the latest technology can be transmitted in this band. Also investment required to roll out infrastructure will be lower for telecom companies in 700 Mhz compared to using higher frequency.

Spectrum auction in the last four years has fetched the government about 1.75 lakh crore, which includes 61,162 crore this year from auction in the 800 MHz, 900 MHz and 1,800 MHz band and 1.05 lakh in 2010 in 2,300 MHz and 2,500 MHz.

Government has set a revenue target of 45,471 crore from communication services, including proceeds from spectrum auction and other related charges in the current fiscal year (2014-15).

Additionally, there are plans to make available 85 MHz spectrum in the 2,100 MHz band - currently used for 3G services - but that will be subject to release by the Defence Ministry, sources said.

Availability of spectrum will aid the government in achieving the objectives in the National Telecom Policy (NTP) 2012.

According to NTP 2012, the government aims to increase rural tele-density from the current level of around 39 to 70 by the year 2017 and 100 by the year 2020.

Besides, it aims to provide affordable and reliable broadband on demand by 2015, to achieve 175 million broadband connections by the year 2017 and 600 million by the year 2020, at minimum 2 Mbps download speed and making available higher speeds of at least 100 Mbps on demand.

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