The Department of Telecommunications (DoT) plans to ask the Cabinet to take a decision on spectrum pricing and one-time charges for extra spectrum held by various operators.
It is believed that DoT has finalised its views on this subject and will refer it to the Telecom Commission. Thereafter, the matter will be sent to the Cabinet for consensus.
Prior to this, the Telecom Regulatory Authority of India (TRAI) had recommended an over six-fold increase in the cost of start-up spectrum. Its recommendations also included extra spectrum held beyond the contracted limit of 6.2 Mhz by various operators including Bharti airtel, Vodafone Essar, Idea Cellular, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) in different circles.
According to TRAI, the initial 6.2 Mhz of spectrum would now cost Rs 109.72 billion for pan-India operations, compared to Rs 16.58 billion earlier. Furthermore, every Mhz of additional spectrum (on an all-India basis) beyond the contracted limit of 6.2 Mhz would cost a massive Rs 45.71 billion.
Also, the licences of operators including Bharti airtel are due for renewal after completing 20 years periodicity in several circles. Such companies would have to pay to renew their licences as per TRAI?s new norms.
