Spectrum allotment beyond 4.4 megahertz will now be done through an auction, according to Press Trust of India.
The move, which is likely to affect new entrants in the telecom sector, will benefit established GSM operators as they were spared such additional charges till they had 6.2 megahertz, PTI reported.
“Telecom commission has decided to charge new operators. For additional spectrum beyond 4.4 megahertz, telcos have to buy additional airwaves through auction,” the news agency quoted a person with direct knowledge of the matter as saying.
RCR Wireless News previously reported that India’s new telecom operators – which include Tata Teleservices, Reliance Communications, Sistema-Shyam and Uninor, among others – have asked the government to consider allotting as much as 6.2 megahertz spectrum to them without any additional charge.
“We are deeply concerned about this proposal as we have contractual arrangement with the Government for allotment of 6.2 megahertz against one-time entry fee and based on that we did our network, financial and marketing planning activities and decided the roll out plans,” the telecom operators told the government in a letter. “If new operators like us are now going to be burdened with additional payment for 1.8/2.5 megahertz spectrum, it would impact our sustainability and scalability.”
The Telecom Regulatory Authority of India has been mulling charging telecom operators for additional 1.8 MHz (GSM)/2.5 megahertz (CDMA) spectrum, beyond the startup spectrum of 4.4 MHz/2.5 megahertz, respectively.
The new telecom operators have argued that because the established players have already cornered maximum spectrum and subscriber bases, the new players should be given more concessions in view of the limited market.
