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One-time fee for extra spectrum not ruled out: Telecom Secy

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 2:49 AM IST

In a move that may put huge financial burden on old GSM operators, the Telecom Commission has said that one-time charge for extra spectrum beyond the contracted limit of 6.2 MHz held by these players cannot be ruled out.

"Levy of one-time fee cannot be ruled out," Telecom Commission Chairman and Telecom Secretary R Chandrasekhar said.

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 telecom regulator Trai and the amount was computed by experts.

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.
   
"We will make the recommendations and deliberation of Telecom Commission to the government," Chandrasekhar said.
   
Trai had recommended 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.
   
Further, the Commission has also decided to charge uniform licence fee of 8% as against 6-10% now. This will be implemented in two phases.
   
"Uniform License Fee is 8% but in two steps. First year and than second year. Some who are below will come to 8% and those who are above will come down to 8%," Chandrasekhar said.
   
The telecom industry was demanding a lower licence fee of 6% of adjusted gross revenues (AGR) while the sectoral regulator Trai had recommended 8% of AGR.

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First Published: Dec 27 2011 | 5:33 PM IST

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