Monday 27 January 2014

EGoM to take up spectrum usage charge issue in its meeting

The Empowered Group of Ministers (EGoM) on telecom, headed by Finance Minister P Chidambaram, is likely to deliberate upon the controversial issue of spectrum fee and long-awaited mergers and acquisitions norms in a meeting on Monday

EGoM could pick and choose from Telecom Commission’s (TC) suggested three opinions. With the first one being, charging a flat fee of 1 per cent on BWA and 3 per cent when combined with other sets of airwaves, a proposal which is backed by TRAI’s approval. The second option suggested by TC in its meeting held on January 25, 2014, is to continue to charge a differential fee of 3-5 per cent for airwaves now held by operators and 5 per cent for new spectrum. The third option suggested by the group is of levying a charge of 3 per cent for new spectrum, while continuing with differential pricing for existing spectrum.

Some reports suggests that EGoM is likely to accept either the first option or the third option of 3 per cent for new spectrum. However, the move could be interpreted as a concession for telecom firms, who had threatened to shun the upcoming 2G spectrum auctions, if the differences over spectrum use charge were not resolved.

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