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DoT to re calculate one time spectrum charge after auction

DoT to re-calculate one-time spectrum charge after auction

By Press Trust of India | Updated: 23 December 2013 13:36 IST

The Department of Telecom is planning a re-calculation of the one-time spectrum charge, which has been estimated at about Rs. 25,000 crore, to be levied on telecom operators after completion of next round of auction.

"We will need to re-calculate it (the one-time spectrum charge) once auctions are completed," a DoT official told PTI.

One spectrum fee is the charge operators have been asked to pay for holding additional spectrum.

(Also see: DoT sets one-time spectrum fee for cancelled licences)

Initially, telecom firms were given 4.4 MHz spectrum along with licence for Rs. 1,658 crore for pan-India operations. They were entitled to get another 1.8 MHz on fulfilment of certain subscriber-base conditions.

Most of the operators were allocated additional spectrum without paying any upfront charges for it.

In November last year, the government decided that operators should pay for holding spectrum above 6.2 MHz retrospectively, from July 2008 to January 1, 2013 based on market determined price decided in auction.

Besides, for spectrum above 4.4 MHz operators would have to pay for the period between January 2013 and the expiry of licences. The rule applied to CDMA players like Reliance Communications, Tata Teleservices for spectrum above 2.5 Mhz.

In the estimates, DoT had included price of spectrum in four cities Delhi, Mumbai, Kolkata and Rajasthan based on reserve price fixed by government as there were no bidders.

DoT had raised demand for about Rs. 26,000 crore as one-time spectrum fee. TTSL, however, surrendered additional spectrum under protest in all service area, except Delhi and Mumbai, which brings down the total estimates calculated by DoT. The company has also approached court challenging order on one-time spectrum fee.

DoT issued demand notice to companies in January but no amount has been recovered yet as most of the telecom service providers have challenged the order before courts and the matter is now sub-judice.

GSM operators were asked to pay total of about Rs. 23,177 crore and CDMA operators were jointly asked to pay Rs. 3,000 crore.

As per demand raised by DoT for GSM airwaves, BSNL will have to pay around Rs. 6,912 crore, Bharti Airtel Rs. 5,201 crore, Vodafone Rs. 3,599 crore, MTNL Rs. 3,205 crore.

Idea Cellular Rs. 2,113 crore (includes Rs 231.5 crore of Spice), Aircel Rs. 1,365 crore (includes Rs. 14 crore of Dishnet), Loop Mobile Rs. 606 crore and Reliance Communications Rs. 173 crore.

Charges for additional CDMA spectrum held by RCom is estimated to be around Rs. 1,752 crore and for Tata Teleservices Rs. 1,155 crore approximately.

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