New Delhi: The Wireless Planning and Coordination Wing of the Department of Telecom is understood to be in favour of levying lower spectrum charges on mobile operators than those recommended by regulator TRAI.

The WPC wing is considering a proposal to levy one-time fixed spectrum charges for additional spectrum of 1 MHz for Rs 2 crore, 1 crore and Rs 0.35 crore for categories A, B and C circles respectively against TRAI's recommendations of Rs 16 crore, eight crore and three crore respectively.

It may also propose to redefine the category of service areas based on population instead of the earlier basis of economic potential of the area.
The WPC proposals would benefit existing GSM operators, which have hoarded large chunks of the radio waves beyond their contractual limits, according to sources.

Earlier, a committee on spectrum pricing had recommended a flat rate of eight per cent annual charges for up to 5 MHz of spectrum held by service providers and subsequently one per cent for every additional megawatt of frequency.

Communication Minister A Raja had asked the Commission to work out spectrum charges for arriving at right pricing of the scarce resource so as to ensure that mobile operators use the airwaves more efficiently.

Currently, operators have been paying in the range of 2-6 per cent of their AGR for 4.4-15 MHz of spectrum. The Department of Telecom (DoT) is working on enhancing spectrum charges, which are collected on the basis of the operators annual revenues, and the consequent benefits to the government and its implications on tariffs of telecom services.

Source : PTI