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of India after the ministerial panel's decision on Monday.
Bharti and Vodafone must buy spectrum in the February auction to renew their permits in some key cities and are expected to benefit from the 5 percent cap because they currently pay around 6 percent of their revenue in annual fees in those markets.
But smaller carriers that pay less than 5 percent currently, will tend to move towards the 5 percent rate gradually if they buy more spectrum from the auction, Mathews said.
The total spectrum fee for carriers' existing spectrum and new spectrum from the February auction will be calculated based on a weighted average of the old and new fee, Sibal said.
Sibal said companies like Reliance Industries Ltd, which bought 4G spectrum in a 2010 auction, will continue to pay 1 percent of their revenue as annual fee for that spectrum. Reliance, which is also bidding in the February auction, had opposed any change in the fee for 4G spectrum.