10.11.12

Spectrum surcharge


The government decided to get mobile operators to pay for extra spectrum held by them, a move that will make the cash-strapped exchequer richer by over Rs 25,000 crore, although industry players warned of a possible increase in call tariffs.
The decision is expected to hit Bharti Airtel and Vodafone the most. Other players, including Idea Cellular, Reliance Communications, MTNL and Tata Teleservices, will also be affected.
An official statement said the government would charge for all spectrum beyond 4.4 mega hertz held by telecom companies once auction prices are available. The “prospective” levy is expected to come into effect from the January-March quarter.
Separately, operators holding over 6.2MHz airwaves will have to pay for it from July 2008. Here the levy will have two elements. For 2008 to December 2012, the Centre will use the 2001 price of Rs 1,658 crore as the benchmark and adjust it for inflation. From January, the auction-determined price will be used.

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