Business Daily from THE HINDU group of publications
Saturday, Aug 04, 2007
ePaper
Business Daily from THE HINDU group of publications Saturday, Aug 04, 2007 ePaper |
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Info-Tech
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Telecommunications We do pay and pay high for spectrum: GSM operators
Our Bureau New Delhi, Aug. 3 The Cellular Operators Association of India (COAI) has said GSM operators are not getting spectrum for free and will be coughing up as much as Rs 10,000 crore as spectrum charges over the next three years. In a letter written to the Communications Ministry, the association said: “Based on actual data collected from some large operators and then pro rating it for the entire GSM industry, it is estimated that the GSM industry has already paid over Rs 1,800 crores on account of additional allotments of spectrum. This is over and above the 2 per cent usage charge paid by the industry.” The letter was in response to allegations made by rival operators that GSM operators were getting spectrum for free.
“It is estimated that as per the existing regime, the GSM industry over the next three years alone, will pay over Rs 10,000 crore as spectrum usage charges to the Government of which almost Rs 6,000 croreswould be on account on the high incremental charges being applied by the Government, over and above the initial charge of 2 per cent,” the letter said. Ananalysis of a large GSM operator in Delhi found that during the tenure of license and as per applicable rates, he pays the Government as much as Rs 1,700 crore for spectrum usage which is ten times higher than the entry fee set for Delhi under the UAS License and farhigher than the fees paid for mobile licenses internationally, the COAI said.
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