The country's finance ministry seems to have had its way after it asked the telecoms ministry to double the proposed price suggested last year of exactly half this amount, according to a report by the Press Trust of India news agency.

However, a Reuters report said the pricing and the rules of the auction could be announced in a week. The country's road to 3G policy has so far been on a controversial, delayed and tortuous path.

Two state-owned operators, the Bharat Sanchar Nigam Ltd.(BSNL) and the Mahanagar Telephone Nigam Ltd. (MTNL), have already been allowed to offer 3G services and have launched these services in some parts of the country. MTNL launched the services last December while BSNL did so in February of this year, giving both operators a head start over private operators who will have to take part in the auctions, now slated for mid-August.

BSNL and MTNL will each have to shell out the reserve price of $835 million. This reserve price does not include the cost for using spectrum.

In addition to BSNL and MTNL, six private operators will be allowed to offer 3G services initially with this number likely to be increased at a later date.