GSM operators may be charged Rs2,000 crore on excess 2G spectrum usage

New Delhi: Leading GSM operators in India such as Bharti Airtel, Vodafone Essar, Idea Cellular and others will be charged Rs266 crore per MHz of spectrum for all the second generation (2G) radio frequencies they hold over the 6.2-MHz mark, according to the Department of Telecommunications (DoT).

GSM operators have up to 10 MHz of 2G spectrum in several circles. As per this procedure, all GSM players combined would have to pay over Rs2,000 crore for radio frequencies they hold beyond the 6.2 MHz mark, says industry experts.

Acording to DoT, the entry fee of Rs1,651 crore for a pan-India mobile licence divided by 6.2 along with prime lending rate to take care of time value of money.

The DoT also plans to raise the 2G spectrum usage charges for all telcom firms. Currently, telecom operators in the country pay 2-6 per cent of their annual gross revenue (AGR), for mobile services on 2G frequencies. The charges depend on the amount of spectrum they hold, as usage charges to the government.

The DoT move implies that all telcom companies will have to pay higher spectrum usage charges, irrespective of the quantity they hold. Earlier, telecom regulator Telecommunications Regulatory Authority of India (TRAI) had recommended that the government increase spectrum charges by 1 per cent only for telcos who hold radio frequencies beyond 6.2 MHz.