DoT may slap new one-time fee on mobile operators: report

The department of telecommunications (DoT) is planning to impose a one-time 2G spectrum enhancement fee on those operators holding radio waves beyond 6.2 Mhz.

Barring new entrants, all the existing licensees have over 6.2 Mhz spectrum. If the proposal is implemented, all exisitng operators will have to pay the enhancement fee, The Economic Times reported.

Sectoral regulator Telecom Regulatory Authority of India is all set to give its recommendations on the overall spectrum management this month besides reviewing the licensing conditions, and spectrum enhancement fee forms a part of its proposal.

The paper quoted a senior DoT official as saying this one-time fee will be based on the market valuation of spectrum and will be in addition to the spectrum usage charges. The official added that the proposed fee will be applicable only on additional spectrum allocation and not for start-up spectrum.

An internal DoT letter shows that the department is planning to get the views of the commerce ministry before taking it up with the Telecom Commission.

The Department of Industrial Policy and Promotion (DIPP), under the commerce ministry, has sought more time to give its views on it.
According to the letter, the issue was discussed at the Telecom Commission meeting on 11 November.

At present, GSM and CDMA operators get 4.4 MHz and 2.5 MHz respectively of start-up radio frequencies per circle to launch operations, which come bundled with the licence.

However, since the licence entitles each player to a minimum of 6.2 MHz spectrum per circle, the DoT has also sought to charge this one-time fee for this additional allocation of 1.8 MHz.