DoT for a one-time fee for spectrum beyond 6.2 MHz

The Telecom Commission, the highest decision making body of DoT, has decided to charge

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a one-time fee for extra spectrum beyond the contracted limit of 6.2 MHz, a move that may put huge financial burden on old GSM operators.

According to sources, the one-time spectrum fee would be charged beyond 6.2 MHz "from the date of allocation of spectrum".

Besides, the Commission has also decided that the government will also charge for spectrum between 4.4 MHz and 6.2 MHz on the basis of auction, after notification is made, sources added.

Leading telecom operators, including Bharti, Vodafone and Idea, have been opposing this saying there was no such clause in the telecom licences under which this type of levy can be imposed.

Moreover, these operators have claimed that allotment of spectrum to them was as per the policy of the day.

The one-time fee was recommended by regulator Trai and the amount was computed by experts.

The Telecom Regulatory Authority of India (Trai) had recommended that each MHz of additional spectrum, after the 6.2 MHz limit, held by operators should cost a one-time Rs 4,571.87 crore (all-India).

According to sources, there was near unanimity in the Telecom Commission over the controversial issue of one-time fee and the pricing of extra spectrum, but the issue has been left to the government to take a final decision.

Trai had also suggested that the one-time fee would vary from circle to circle and the operators would have to pay only for those circles where they hold extra spectrum.

The operators, on the other hand, had supported an auction route to determine one-time fee for spectrum beyond 6.2 MHz.

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