The Union
Cabinet on November 8, 2012 approved the proposal of
an Empowered Group
of Ministers (EGOM) to levy a one-time spectrum charge of about Z
31,0000 crore on all existing telecom operators in the country.
The
decision is expected to hit market leaders Bharti Airtel and
Vodafone the most, as well as two-state owned operators — Bharat Sanchar Nigam Limited
(BSNL) and 'Mahanagar Telephone Nigam Limited (MTNL) proposed that GSM-based
telecom companies pay for all their 2G spectrum holdings beyond 4.4 MHz, while
CDMA players were to pay the Levy beyond 15 MHz holding prospectively for the
remaining period of their licences.
·
Telcos
argue that it will hurt them when their profits are under pressure.
·
GSM
above 6.2 MHz will be levied one-time fee from July,
2008.
This
charge, EGoM had proposed, was to be linked to the price at which spectrum is
sold in the auctions.
However, the telecom department will decide a benchmark later for CDMA players, as there is no company in the fray to buy CDMA spectrum. The government had planned to hold two separate auctions for spectrum used by GSM and CDMA-based mobile phone carriers, hoping to reap a combined 40,000 crore revenue.
However, the telecom department will decide a benchmark later for CDMA players, as there is no company in the fray to buy CDMA spectrum. The government had planned to hold two separate auctions for spectrum used by GSM and CDMA-based mobile phone carriers, hoping to reap a combined 40,000 crore revenue.
Level-Playing
Field
The
country had traditionally bundled airwaves with telecom permits. This is the
first time the government has auctioned off second-generation airwaves, since
the 2G spectrum scam made the headlines in 2008.
Union
Telecom Minister Kapil Sibal said the surcharges are aimed at creating a
level-playing field between old and new operators.
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