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Annual spectrum fees for telcos to be raised

Reuters

Posted: Wednesday, Nov 05, 2008 at 1327 hrs IST
Updated: Wednesday, Nov 05, 2008 at 1327 hrs IST


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New Delhi, November 5: : India will charge a fee of 1-2 percent of mobile operators' revenue for using additional airwaves and will also levy a one-time charge for spectrum beyond 6.2 MHz, a telecoms ministry spokesman said on Wednesday.

The decision will affect all leading telecoms operators, including No. 1 player Bharti Airtel and rivals Reliance Communications and Idea Cellular.

Akshay Rout, additional director general of media and communications, said firms would be charged 1 percent of their revenue for spectrum between 4.4 and 8 MHz, and 2 percent for up to 10 MHz spectrum.

"The modalities, including the timeline, will be decided by the telecom commission through formal channel when they meet on Monday," Rout said.

The decision was taken after the telecoms minister, Andimuthu Raja, met the prime minister and finance minister on Tuesday, he said. It is in line with a recommendation from the telecoms regulator made earlier this year.

At 0725 GMT, shares in Bharti were down 3 percent, Reliance Communications had fallen 6.6 percent and Idea Cellular had lost 5.9 percent in a weak Mumbai market.

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