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| Govt mulls to raise spectrum charges from next year |
| Press Trust of India / New Delhi Nov 23, 2009, 20:52 IST |
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The government is planning to implement the new increased spectrum usage charges from January next year, a move that could hit the bottomline line of telecom companies.
In an internal note, the Department of Telecom has sought approval of Telecom Minister A Raja to implement the proposal, which has already been approved by the Telecom Commission.
While Finance Ministry wants the charges to apply retrospectively from 2008, DoT fearing legal retaliation wants this to be made applicable from 2009.
At present, if a service provider has 4.4 MHz of spectrum in any circle, the operator must share 2 per cent of the revenues with the government as spectrum usage charges.
For 6.2 MHz of radio frequencies, the spectrum charge is 3 per cent of the total revenues, for 8 MHz and 10 MHz it is 4 per cent and for 12.5 MHz it is 5 per cent.
Now these charges will be 3 per cent, 4 per cent, 5 per cent and 6 per cent for 4.4 Mhz, 6.2 Mhz, 8 Mhz and 12.5 Mhz spectrum in the same order. The proposed increase is in line with Trai recommendations.
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