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Excess spectrum to cost only Rs12k cr to 4 big telcos: Trai

Excess spectrum to cost only Rs12k cr to 4 big telcos: Trai
PTI
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First Published: Thu, May 13 2010. 06 49 PM IST
Updated: Thu, May 13 2010. 06 49 PM IST
New Delhi: Seeking to assuage fears of big four mobile service providers, including Bharti, of huge payout for excess spectrum telecom regulator Trai on Thursday said their outgo would be only about Rs12,000 crore.
“There is no need for anxiety ... the payout for each of these four companies are not much. As per Trai estimations, the amount of money Bharti will have to pay is Rs3,498 crore and for Vodafone Essar it is Rs2,849 crore. For MTNL, it is Rs2,669 crore and for BSNL it is Rs3,040 crore,” Trai chairman JS Sarma told PTI.
For radiowaves beyond the contracted 6.2 Mhz in their possession, the Telecom Regulatory Authority of India (Trai) on Tuesday recommended that operators pay a one-time fee based on prices of 3G spectrum, auction for which is currently on.
Bharti, Vodafone Essar, MTNL and BSNL hold over 6.2 Mhz spectrum in many of the circles. Bharti and Vodafone hold more than 10 MHz in many circles, including Mumbai and New Delhi.
As per Trai proposals, for spectrum between 6.2 Mhz and 8 Mhz, operators have to pay one-time fee discovered by 3G auction. For spectrum 8 Mhz-10 Mhz, the fee 1.3 times of 3G price.
Sarma said this outgo would also come down if the proposed licence fee of 6% comes into picture. In that case, the net outgo for Bharti would be Rs1,500 crore.
Bharti and Vodafone have termed the Trai’s proposals as “arbitrary and shocking.” Bharti Airtel said the recommendations are “designed to punish efficient and performing operators like us.
The telecom stocks were battered on stock markets following the the telecom regulator’s proposals in anticipation of their balance sheets being hit by huge payout by operators.
Responding to reactions of the operators, Sarma said “recommendations are not anti-consumer... there is no impact on prices. We would keep track of any unwarranted change on price due to this proposals.”
All Trai proposals need to be approved by the Department of Telecom (DoT) to be made a law.
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First Published: Thu, May 13 2010. 06 49 PM IST
More Topics: Telecom | Spectrum | Airtel | Vodafone | BSNL |