Government likely to impose an entry fee of Rs 5 billion for 3G mobile service spectrum

The government is likely to impose an entry fee of Rs 5 billion for 3G mobile service spectrum, in order to settle the conflict between the finance ministry and DoT. In exchange, the finance ministry might accept DoT’s proposal for a revenue share of 3 per cent for 5 MHz, 5 per cent for 10 MHz, 7 per cent for 15 MHz and 9 per cent for 20 Mhz. However, both sides are yet to reach a consensus on the reduction of the service tax by half, as proposed by DoT.