In a major setback to incumbent operators like Bharti Airtel, Vodafone Essar, Idea and BSNL/MTNL, telecom regulatory Authority of India (TRAI) has recommended fixing the price for 6.2 Mhz of pan-India start-up 2G spectrum at Rs 10,972.45 crore, more than six times the present cost of Rs 1,658 crore.

In its recommendations to the Department of Telecom (DoT), Trai has also said that every Mhz of additional spectrum (on an all-India basis) beyond the contracted limit of 6.2 Mhz would cost a massive Rs 4,571.87 crore.

Most of the incumbent operators hold extra spectrum beyond 6.2 Mhz and the new norms would put a huge financial burden on them.

In addition, the licences of some of the operators, including Bharti, are due for renewal after completing 20 years periodicity in several circles. Such companies would have to pay to renew their licences as per the new norms recommended by TRAI.

According to the report, the spectrum prices for both categories -- up to 6.2 Mhz and beyond 6.2 Mhz -- vary from circle to circle.

In the category of up to 6.2 Mhz of spectrum, the prices of one Mhz varies from Rs 7.60 crore in the case of Jammu and Kashmir to Rs 187.38 crore in the case of Tamil Nadu.

In the category of beyond 6.2 Mhz of spectrum, the price varies form between Rs 22.89 crore per Mhz in Jammu and Kashmir to a maximum of Rs 431.95 crore in Andhra Pradesh.

The revised prices recommended by TRAI are effective from April 1, 2010, the report said.