There is bad news for mobile telephone service providers. The department of telecommunications (DoT) is set to increase spectrum fee by one per cent. Telecom Regulatory Authority of India (TRAI) has agreed to suggestions by DoT to increase spectrum fee by one per cent across the board.

The move is expected to fetch the government additional revenue to the tune of Rs 600 crore. Thus the total revenue from spectrum will increase to Rs 2,600 crore.

Presently, operators pay annual spectrum fee which is 2 per cent per cent of annual gross revenue for 4.4 Mhz of spectrum, 3 per cent for 6.2 Mhz and 4 per cent for more. Under new system it will become 3 per cent for 4.4MHz, 4 per cent for 6.2 MHz and 5 per cent for more. The operators also pay an upfront spectrum fee of Rs 1,650 crore.

TRAI has sought details on DoT's proposal of a ‘one-time charge’ for additional spectrum beyond 6.2 Mhz. saying it has to be seen from legal and financial point of view.

However, on another DoT proposal of levying one-time entry fee on spectrum beyond 6.2 MHz, TRAI has sought more details from the department. Sources said the telecom commission, which was to take up the issue on Friday, has dropped this point.

“The details of a ‘one-time charge’ would be necessary for examining the proposal from legal and financial point of view. After receipt of the details of the scheme, the regulator shall send its recommendations to DoT,” the regulator said.

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