DoT may charge more for extra spectrum in metros

The Department of Telecommunication (DoT) is likely to impose a higher one-time fee on operators seeking spectrum beyond 6.2 MHz in metro cities and Category A circles.

Senior DoT officials said any licensee seeking spectrum beyond 6.2 MHz in existing 2G bands would have to pay extra per megahertz for Delhi, Mumbai and Category A circles.

While the charge is being worked upon, sources say it will not be less than Rs 150 crore per Mhz.

The DoT is facing flak from the finance ministry, which has charged that it is awarding spectrum to new operators at throwaway prices. The one-time fee will also be accompanied by 1 per cent annual usage charge, sources say. The finance ministry has already told the DoT to charge Rs 375 crore per MHz as additional fee.

But sources said the DoT might not charge this much as operators who would qualify to get over 6.2 MHz of spectrum might find applying for a fresh all-India licence cheaper. At present, an all-India licence costs Rs 1,651 crore and comes with 4.4 MHz of start-up spectrum. The Telecom Regulatory Authority of India (Trai) had suggested Rs 16 crore per MHz charge for spectrum above 10 MHz in Mumbai, Delhi and A circles. But the DoT is unlikely to charge this amount as it is considered too low.

The DoT has set up a committee to recommend methodology for allocation and pricing of spectrum.

The new pricing formula for spectrum beyond 6.2 MHz, according to Union Communications and IT Minster A Raja, would be unveiled by the end of next month after consultation with the finance ministry.