DoT issues guidelines for spectrum auction

Telecom companies whose licences have been cancelled by the Supreme Court will have to pay one time, non-refundable entry fee Rs1 crore for unified licences for each service area, said the guidelines issued by the DoT for the spectrum auction beginning November 12.

"Entry fee (non-refundable) Rs 1 crore for each Service Area Level UL (Access Services) except for Jammu and Kashmir and North East Service Areas where Entry Fee shall be Rs50 lakh each," said the Notice Inviting Application issued by DoT today.

The companies who have lost their licences after the Supreme Court judgement will be treated as new companies for participating in the auction and they need to obtain Unified Licence if they win the spectrum.

DoT said that in addition to the one time non-refundable entry fee, "annual licence fee as a percentage of AGR (Adjusted Gross Revenue) will be payable as per the rates specified by DoT."

The NIA does not include concept of national level unified licences that was recommended by Telecom Regulatory Authority of India.

"If an existing players emerges successful bidder then that company will have to apply to DoT for amendment of existing License within seven calendar days of being declared successful in the auction," the NIA said.