DoT asks CDMA players to pay one-time fee for additional spectrum
After GSM players, now CDMA telecom operators have been asked by the telecom department to pay one-time fee for the additional spectrum beyond 2.5Mhz in 800 Mhz band.
The Department of Telecom (DoT) has asked Indian CDMA telecom players to shell out a one-time fee of roughly Rs. 3,033 crore for the spectrum they own beyond their allocated 2.5MHz spectrum in the 800 MHz band. The rate for one-time spectrum fee, based on the reserve price fixed for the March 11 spectrum auction, will be applicable from 01-01-2013.
As per the order, the DoT will be levying the charges for additional spectrum for the remaining licence period. The telecom department, however, will not levy any charges from operators, who want to surrender the additional spectrum. The DoT is offering an option of paying the fee in instalments, but the operators will have to ensure the payment is cleared one year before the licence expiry.
The latest DoT move will have a big impact on Reliance Communications, Tata Teleservices, Sistema Shyam (SSTL) as well as state-run BSNL and MTNL telecom operators, who possess spectrum beyond 2.5 MHz in certain circles. SSTL, which recently bagged 3.75MHz spectrum in 8 circles, will not need to pay the one-time spectrum fee for those circles but the company may have to pay for the Rajasthan circle, which remained unaffected by the SC order of revoking 122 licences.
According to reports, RCom and Tata Tele will have to shell out about Rs. 1,752 and Rs. 1,155 crore respectively as one time spectrum fee.
It’s notable the telecom department had already issued similar notices to GSM players regarding the one-time spectrum fee. The government is expecting more than Rs. 23,000 crore from the GSM players.
Source: The Hindu