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Policy & Regulation
Cabinet gives nod to one-time spectrum fee
TT Correspondent |  |  08 Nov 2012

The Cabinet on Thursday gave go-ahead to the one-time fee on spectrum held by incumbent telecom firms such as Bharti Airtel and Vodafone.
 
According to government’s estimates, one-time fee for additional spectrum that the Empowered Group of Ministers (EGoM) had recommended can fetch Rs. 30,000 crore.
 
Last month EGoM headed the finance minister P Chidambaram had recommended that incumbent operators would pay one-time fee for spectrum they hold above 4.4MHz. according to the panel’s decision.
 
The cabinet decided that for all spectrum holdings beyond 4.4 MHz (GSM), a onetime charge be levied prospectively upon the existing operators at 2012 auction determined price. The date of applicability of the charge shall be the date of commencement of the first quarter following the date of the Cabinet decision;
 
For spectrum held above 6.2 (GSM), a one-time charge would be levied from July 2008 onwards. There will be two prices. The price, pro-rated for the period July 2008 up to the date of applicability of auction determined price, would be the 2001 entry fee divided by 6.2, duly indexed using State Bank of India Prime Lending Rate (SBI PLR).

    
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08 Nov 2012(IST)  
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