DoT plans enhancement fee on spectrum beyond 6.2 Mhz

Last Updated: Monday, December 7, 2009 - 22:08

New Delhi: The Department of Telecom (DoT)is
planning to impose a one-time 2G spectrum enhancement fee on
those operators holding radiowaves beyond 6.2 Mhz.

Since barring the new operators all the existing
licencees have over 6.2 Mhz spectrum, if the proposal is
implemented, all of them will have to pay it.
Sectoral regulator TRAI is all set to give its
recommendations on the overall spectrum management this month
besides reviewing the licensing conditions, and spectrum
enhancement fee forms a part of its proposal.

According to a senior DoT official, this one-time fee
will be based on the market valuation of spectrum and will be
in addition to the spectrum usage charges. The official added
that the proposed fee will be applicable only on additional
spectrum allocation and not for start-up spectrum.

An internal DoT letter shows that the department is
planning to get the views of the Commerce Ministry before
taking it up with the Telecom Commission. The Department of
Industrial Policy and Promotion (DIPP), under the Commerce
Ministry, has sought more time to give its views on it.
According to the letter, the issue was discussed at the
Telecom Commission meeting on November 11.

At present, GSM and CDMA operators get 4.4 MHz and 2.5
MHz respectively of start-up radio frequencies per circle to
launch operations, which come bundled with the licence.

However, since the licence entitles each player to a
minimum of 6.2 MHz spectrum/circle, the DoT has also decided
to extend this one-time fee for this additional allocation of
1.8 MHz.

PTI



First Published: Monday, December 7, 2009 - 22:08

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