GSM, CDMA spectrum charges raised
27-02-2010
Will hit telco profits at a time when they are most vulnerable
Spectrum charges have gone up. The government today announced an up to 50 per cent increase in spectrum charges for all GSM and CDMA telcos.
The increased spectrum charges would be effective April, this year, according to an official notification.
Telecom service providers have to pay a percentage of their adjusted gross revenue (AGR) to the government as spectrum usage charge. This charge depends on the quantity of spectrum allotted.
The new charges vary between 3-8 per cent depending upon the quantum of airwaves held by the operator. An operator holding up to 4.4 Mhz will be paying 3 per cent of the AGR compared to two per cent now. Most of the incumbent players other than those who got licences in January 2008 are having more than 4.4 MHz of spectrum.
CDMA players with spectrum up to 5.0 Mhz will now have to pay three per cent of their AGR as spectrum charge instead of two per cent earlier.
Spectrum charges have gone up. The government today announced an up to 50 per cent increase in spectrum charges for all GSM and CDMA telcos.
The increased spectrum charges would be effective April, this year, according to an official notification.
Telecom service providers have to pay a percentage of their adjusted gross revenue (AGR) to the government as spectrum usage charge. This charge depends on the quantity of spectrum allotted.
The new charges vary between 3-8 per cent depending upon the quantum of airwaves held by the operator. An operator holding up to 4.4 Mhz will be paying 3 per cent of the AGR compared to two per cent now. Most of the incumbent players other than those who got licences in January 2008 are having more than 4.4 MHz of spectrum.
CDMA players with spectrum up to 5.0 Mhz will now have to pay three per cent of their AGR as spectrum charge instead of two per cent earlier.
