DoT estimates Rs 30,927 cr from one-time fee

The govt had hoped for Rs 40,000 crore from the one-time fee and auction of 2G spectrum

The Department of Telecommunications (DoT) has estimated that incumbent telecom companies (telcos) would have to pay Rs 30,927 crore as a one-time fee for additional spectrum, based on the policy recommendation of the Empowered Group of Ministers (EGoM).

A third of this, Rs 11,818 crore, will fall on government-owned Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd. This is part of the note prepared by DoT for the cabinet meeting scheduled this week, where a final decision on this issue will be taken.

The two state-owned companies have already asked the government to pay the one-time fee for them, a move endorsed by the EGoM. In which case, the government will get only Rs 19,109 crore from the one-time fee.

The government had hoped for Rs 40,000 crore from the one-time fee and auction of 2G spectrum. As operators have to fork out only 33 per cent of this money upfront, it is likely to be in for a major disappointment. Based on the government calculation, it will get only Rs 10,205 crore from the one-time payment and there’s no chance of making up the gap by rustling Rs 30,000 crore from the auction.

The EGoM had decided incumbent operators should pay a one-time fee for spectrum beyond 4,4 MHz in the GSM band and for 2.5 MHz prospectively. But for spectrum beyond 6.2 MHz, they would have to pay retrospectively from July 2008.

While GSM operators have to fork out around Rs 24,989 crore the remaining portion has to be paid by CDMA operators. The additional burden as a result of the change in the EGoM decision, taking cognizance of the advice by the attorney general to charge retrospectively for spectrum beyond 6.2 MHz, is Rs 4,063 crore.