Reliance Comm, TTSL, MTS, BSNL, MTNL to pay Rs 3,033 crore for excess CDMA spectrum


Telecom Lead India:
Reliance Communications, Tata Teleservices (TTSL), Sistema Shyam Teleservices (MTS), BSNL and MTNL need to pay Rs 3,033 crore for CDMA spectrum

The government has asked these CDMA operators to pay the huge money as one-time fee for the spectrum they hold beyond the initial frequencies that were allocated to them.

Reliance Communications, Tata Teleservices, Sistema Shyam (SSTL), BSNL and MTNL hold spectrum beyond 2.5 Megahertz (Mhz) in a few telecom service areas.

According to department of telecom officials, for CDMA spectrum holding above 2.5 Mhz in 800 Mhz band, the rate for one-time spectrum charges shall be applicable from 01-01-2013.

The charges will be levied on additional spectrum for the rest of the licence period and operators not willing to pay these charges will be allowed to surrender their spectrum held over 2.5 Mhz.

DoT has issued rates to be charged annually for each megahertz of frequencies, based on the reserve price that was fixed for spectrum auction held on March 11.

Telecom operators will have an option to pay these charges in equal annual instalments in a manner that the last one ends one year before their licences expire.

SSTL which recently won 3.75 Mhz spectrum in 8 circle will not have to pay one-time spectrum fee for these area but the spectrum held by the company in Rajasthan falls under the ambit of the order.

PTI reported that one time spectrum fee on Reliance Comm and Tata Teleservices amounted to about Rs 1,752 and Rs 1,155 crore respectively, after the Cabinet had reduced CDMA spectrum base price for auction by 50 percent.

editor@telecomlead.com

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