The Hindu Business Line : DoT panel mulls new 2G spectrum pricing formula

New Delhi, May 1 The committee set up by the Department of Telecom to review the spectrum allocation policy has come up with a new formula to impose a one-time fee from existing players with more than 6.2 Mhz.

The committee is considering asking existing players to pay a one-time fee that will be derived from the 3G auction price on pro rata basis.

This means that if the Government gets Rs 4,000 crore from auctioning 5 Mhz of 3G spectrum, existing cellular players will have to cough up Rs 800 crore for each unit of 2G spectrum beyond 6.2 Mhz.

Mobile operators, including Bharti Airtel, Vodafone Essar and Idea Cellular, may have to cough up Rs 3,000 crore as one-time payment since they have excess spectrum in some circles.

DoT was earlier planning to impose a flat rate of Rs 266 crore for each Mhz.

The committee is also likely to recommend auctioning of all fresh spectrum and doing away with the existing system of subscriber-based criteria.

Operators who have already got a licence will be given start-up spectrum of 4.4 Mhz for GSM and 2.5 Mhz for CDMA after which no one will get additional spectrum by way of subscriber-based criteria. The committee may ask DoT to completely de-link telecom licences from spectrum, which means that in case Government issues any more new licences it will not guarantee the operator even start-up spectrum.

According to DoT officials, the committee is likely to suggest that 2G spectrum should be auctioned in a multi-staged bidding process wherein blocks of 1 Mhz may be put on the block. However, to prevent a single operator from cornering all spectrum, the committee may bar anyone from owning more than 25 per cent of all radio frequency available

The committee is also considering allowing operators to trade their spectrum with other universal access licence holders. The committee is expected to submit its report by May 15 after which the new Government will take the final decision.

Related Stories:
DoT asked to clarify on 2G spectrum allocation
Mobile cos may be charged for excess 2G spectrum
Market forces should have determined price of 2G licences: TRAI

More Stories on : Telecommunications | Regulatory Bodies & Rulings

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Heat wave sizzles as seas brace to catch up

DoT panel mulls new 2G spectrum pricing formula

Jet Air issues pink slips to 100 employees

Auto makers enter new fiscal on a positive note

India Inc’s profitability improves in March quarter

Was SC’s probe directive against Modi ill-timed?

DLF Q4 net plummets 93% on demand slump

Why Chrysler found India elusive

Tata Motors to bring Jaguar, Land Rover to India

Panel to look at options on DLF Assets

IT vendors’ average earnings per customer improve

NPAs of pvt banks rise, public sector banks witness decline

Markets this week

Exports plunge 33% in March