The Department of Telecommunications is all set to increase the annual spectrum usage charges paid by mobile phone operators to the government, it is learnt.
Expected to be reviewed within the next 15 days
NEW DELHI: The Department of Telecommunications (DoT) is all set to increase the annual spectrum usage charges paid by mobile phone operators to the government, it is learnt. This is in keeping with Prime Minister Manmohan Singh’s recent statement that the government cannot lose sight of garnering revenues from spectrum allocation to telcos.
Communications minister A Raja, who just a day ago approved the subscriber-linked spectrum allocation formula recommended by Telecom Regulatory Authority of India (Trai), on Thursday is believed to have asked the DoT to review the spectrum usage charges within 15 days.
Besides tightening the subscriber-linked spectrum allocation norms, Trai, in its August recommendation, had also suggested higher spectrum usage charges. The regulator also wanted the government to impose a one-time spectrum charge on telcos for any allocation beyond 10 MHz. Currently, there’s no one-time fee for spectrum allocation, and pan-India licence fee is Rs 1,650 crore. Telcos, however, pay an annual revenue-share fee for spectrum usage.
As per the Trai recommendations, for above 8 MHz and up to 10 MHz of spectrum, annual usage charges should be raised from 4% to 5% of an operator’s revenue. For up to 12 MHz, Trai wanted the annual revenue-share fee raised from 5% to 6%, and for up to 15 MHz from 6% to 7%. Beyond 15 MHz of spectrum, the revenue share fee should be 8%, Trai had proposed. The regulator did not propose any change in spectrum usage charges for up to 4.4 MHz, 6.2 MHz and 8 MHz, which are at 2%, 3% and 4%, respectively.
As for one-time acquisition charge, Trai proposed a price of Rs 16 crore per MHz for spectrum allocation beyond 10 MHz in Mumbai, Delhi and category A circles. For Chennai, Kolkata and category B circles, the regulator wanted the government to charge a one-time fee of Rs 8 crore per MHz for spectrum allocation beyond 10 MHz. For category C circles, the proposed one-time fee was Rs 3 crore per MHz beyond allocation of 10 MHz spectrum.
m_nivedita@dnaindia.net
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}