The Telecom Regulatory Authority of India (TRAI) has said that the proposed hike in spectrum fees would not be a drain on operator revenues, according to news reports.
J.S. Sarma, chairman, TRAI added that if rationalisation of spectrum usage charges and licence fees were taken into account, the net impact would be around 0.5 per cent until renewal and not more than one per cent of the adjusted gross revenue after licence renewal.
He also said that the 900 Mhz spectrum is a valuable asset which was provided at low prices, keeping in mind other benefits (such as enhancing teledensity). Now, he said, since the sector had matured, operators should be willing to pay for spectrum.
TRAI had recommended an over six-fold jump in 2G spectrum prices and also a one-time charge for excess spectrum held by operators over and above the contracted 6.2 Mhz.
