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vvinayakpai

Government Hikes Spectrum Usage Charges For Gsm, Cdma Operators

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Government hikes spectrum usage charges for GSM, CDMA operators

26 Feb 2010, 1757 hrs IST, PTI

NEW DELHI: In a development that would hit telecom operators' profits, the government today announced an up to 50 per cent increase in spectrum

charges for all GSM and CDMA technology based service providers

The increased spectrum charges would be effective April, this year, according to an official order/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 respective operators.

As per the new charge, an operator holding spectrum 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 that 4.4 MHz of spectrum.

Similarly, for 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.

The increase in spectrum charges will put pressure on the profits of the telecom operators who are already struggling to protect their revenues in the wake of intense competition due to entry of new operators in the field.

Source: http://economictimes.indiatimes.com/news/news-by-industry/telecom/Government-hikes-spectrum-usage-charges-for-GSM-CDMA-operators-/articleshow/5620665.cms

Edited by vvinayakpai

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:previous:

Even if competition offers good to consumers, GOVERNMENT NEVER ALLOWS.. So I think operators got some good reasons to hike tariffs to high again now...

This is what we call in Tamil as "Pichai aedukumaam perumaalu, atha pudinki thingumam anumaaru".. :rofl_200:

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Government hikes spectrum usage charges for GSM, CDMA operators

Most of the incumbent players other than those who got licences in January 2008 are having more that 4.4 MHz of spectrum.

he mean rcom holding more than 4.4 in some circles

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To the best of my knowledge RCOM GSM (excluding RTL) does not hold more than 4.4 Mhz spectrum.

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:previous:

So only BIGGIES like Airtel :rofl_200: , Vodafone, Idea, BSNL, needs to worry??? WOW... :clap: So DoCoMo, RGsm, MTS can make use of this opportunity...

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Just for record..

The total spectrum held by RComm as on date is 200.5 Mhz — 113 Mhz in the GSM and 87.5 Mhz in the CDMA segment. TTSL is second slot with 170 Mhz. Bharti holds 167 Mhz and Vodafone-Essar has 143.60 Mhz. Idea Cellular has the least at 123 Mhz. The data further shows that RComm obtained just eight of its 42 licences (22 for GSM and 20 in CDMA) through an auction, while TTSL didn't obtain a single of its 42 licences through auction since licences for the CDMA services were never auctioned.

Source

If one looks at spectrum held based on technology, Airtel holds the highest.

Edited by srk006

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To the best of my knowledge RCOM GSM (excluding RTL) does not hold more than 4.4 Mhz spectrum.

:previous:

So only BIGGIES like Airtel :rofl_200: , Vodafone, Idea, BSNL, needs to worry??? WOW... :clap: So DoCoMo, RGsm, MTS can make use of this opportunity...

I am sure rcom holding more than 4.4 in maharashtra circle, for rent i don't know.

rcom intoduced that CEP(rs25) scheme at begining to gain maximum subscriber to obtian higher spectrum

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Bad news from the side of our Government

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