DoT decides on 3G spectrum fees

12 Nov 2008

India’s Department of Telecommunications (DoT) has taken a decision that new mobile entrants offering exclusively 3G services will pay 3% of their total annual revenues to the government, whilst existing 2G mobile operators that wish to offer 3G services will share 1% of their annual turnover with the state for the privilege. Additionally, the Telecom Commission has approved the DoT’s proposal to impose an additional annual spectrum usage charge of 1% of operating revenues for companies holding frequency blocks of below 8MHz capacity, rising to 2% for larger allocations of above 8MHz bandwidth, scheduled to be effective from 1 January 2009. At present, operators pay between 2% and 6% in spectrum usage charges depending on their frequency resources, which would now become 3%-8% from January. The Commission, however, did not take any decision on a pending one-time spectrum enhancement charge for additional 2G frequency blocks.