India's 2G spectrum auction to increase mobile bills

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India's telecoms sector is back in the news as the government fixed the base price for the auction of the second generation, or 2G, spectrum.

The need for this auction arose as courts cancelled 122 licences awarded to nine companies in 2008.

The minimum bid price has now been set at almost a quarter lower than that recommended by the telecom regulator.

But operators were expecting a deeper cut and say they will be forced to pass on the extra burden to consumers.

Shilpa Kannan reports.

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