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The Department of Telecom is exploring the option of charging a one-time fee even for start-up spectrum up to 4.4 Mhz. At present, this spectrum is given to operators bundled with the licence for a pan-Indian fee of Rs 1,650 crore. The Department will seek legal opinion on whether it can impose an additional fee with retrospective effect.
If this new proposal goes through, new players will have to cough up more money in addition to the entry fee they have already paid.
The DoT is exploring this as part of its overall exercise on pricing air waves. The Telecom Commission has already taken a view that spectrum above 4.4 should be priced. This is even as the industry is divided on the issue with the incumbent players supporting the move while new players saying that pricing should start for all spectrum above 6.2 Mhz. The new players argue that they have been promised 6.2 Mhz of spectrum along with the licence at no additional cost.
In this background, the DoT is looking at whether it can introduce a fee for all spectrum held by the various operators irrespective of whether they are new or old. “We are seeking sought legal view on whether we can levy a one-time charge from all licensees up to 4.4 Mhz (GSM) and 2.5 Mhz (CDMA) and if so what should be date from which this fee be charged,” said a DoT official.
The official said that if the fee cannot be imposed retrospectively, DoT may look at bringing the charge prospectively, that is for future allocations or for the remaining period of the licence. Operators, which received spectrum in 2008, said that they will oppose this proposal on grounds that they were promised start-up spectrum along with the licence and hence it was illegal to now ask for more money. The new players which would have to pay more if this proposal is made into a policy include Uninor, Reliance Communications (GSM) and Sistema Shyam.
DoT officials said that legal opinion is also being taken on what to do with companies that have not been given start-up spectrum till now. There are at least five operators waiting to get initial spectrum in various circles. DoT officials said that they are looking at whether the additional fee can be imposed on such players at the time of allocating spectrum or if spectrum is not allocated at all then whether DoT can refund the initial payment made by the operators.
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