The Department of Telecommunications (DoT) is planning a re-calculation of the one-time spectrum charge, which has been estimated at about Rs 250 billion, to be levied on telecom operators after completion of the next round of spectrum auction.
DoT has asked the operators to pay one time-spectrum fee for holding additional spectrum. Initially, operators were awarded 4.4 MHz of spectrum along with the pan-India telecom licence for Rs 16.58 billion by DoT. Operators were entitled to get another 1.8 MHz of spectrum on fulfillment of certain subscriber-base conditions. Subsequently, majority of the operators were allocated additional spectrum without paying any upfront charges for it.
In November 2012, the government decided that operators should pay one time spectrum fee for holding spectrum above 6.2 MHz retrospectively, from July 2008 to January 1, 2013 based on market determined price to be discovered through auctions. Besides, for holding spectrum above 4.4 MHz operators would have to pay a one-time licence fee for the period between January 2013 and the due date of the expiry of their licences.
As per DoT?s estimates GSM and CDMA operators are liable to pay one time spectrum fee of Rs 231.77 and Rs 30 billion. DoT had issued demand notice to operators in January 2013 but no amount has been recovered yet as majority of the service providers have challenged the order before courts and the matter is now sub-judice.
As per demand raised by DoT for GSM players, Bharat Sanchar Nigam Limited will have to pay about Rs 69.12 billion as one-time spectrum fee, Bharti Airtel (Rs 52.01 billion), Vodafone India (Rs 35.99 billion) and Mahanagar Telephone Nigam Limited (Rs 32.05 billion), Idea Cellular (Rs 21.13 billion), Aircel (Rs 13.65 billion), Loop Mobile (Rs 6.06 billion) and Reliance Communications (Rs 1.73 billion).
Further, CDMA service provider Reliance Communications is liable to pay a one time-additional spectrum fee of Rs 17.52 billion as well.
