In a major boost to old GSM operators, the Government on Wednesday said all service providers would be allowed to hold higher spectrum of up to 10 MHz, a move that would help them offer quality services.

Announcing a part of the New Telecom Policy, the Telecom Minister, Mr Kapil Sibal, said that “the prescribed limit on spectrum assigned to a service provider will be 2x8 MHz (paired spectrum) for GSM technology for all service areas other than Delhi and Mumbai, where it will be 2x10 MHz (paired spectrum).” Current prescribed limit is 6.2 MHz of GSM spectrum.

However, players would be free to acquire additional frequency beyond the prescribed limit, in the open market, should there be an auction of spectrum subject to the limits prescribed for merger of licences.

All spectrum would be de-linked from the licence from now, he said, adding that a decision on pricing of spectrum or one-time charge for extra spectrum held by some incumbent operators would be taken later in view of the Supreme Court judgment that cancelled 122 2G licences issued in 2008.

He also announced a uniform licence fee of eight per cent of Adjusted Gross Revenue across services and circles as compared to range of 6-8 per cent now. Licence fee is a levy paid by all operators as the annual fee. On renewal of licences, Mr Sibal said it would be done for 10 years.

“It will not be an automatic continuance of the existing licence condition, including the quantum and the price of spectrum to be allocated, but the certainty is there that licence will be renewed for a period of 10 years,” he said.

Entry fee

For migration to the new unified license regime, operators would also have to pay an entry charge. For metros and A circles, it would be Rs 2 crore, while Rs 1 crore and Rs 50 lakh would be charged for B circles and C circles, respectively.

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