Government earns Rs9,500 crore through spectrum, license fee

Government earns Rs9,500 crore through spectrum, license fee

New Delhi: The rapid growth in wireless services has resulted in buoyant revenues for the government with the exchequer realising about Rs9,500 crore in the form of license fee and spectrum charges in 2006-07.

According to an analysis by telecom regulator TRAI, about Rs2,090 crore was collected as spectrum charges from the operators, while license fee payment was Rs6,360 crore.

Realization from spectrum charges is steadily going up. The analysis shows it was Rs1,028 crore in 2004-05 and Rs1,367 crore in 2005-06.

License fee, which is paid as a percentage of adjusted gross revenue, increased from Rs5,695 crore in 2005-06.

The telecom industry in India has seen phenomenal growth in the recent past. Growth in the last fiscal year has almost outpaced total combined growth from the beginning of mobile telephony in India through to March 2004. The industry has already met the 2010 goal of a teledensity of 15% set in the New Telecom Policy 1999, and is poised to surpass the DoT’s target of 250 million subscribers by 2007, it said.

However, the regulator expressed its dissatisfaction over spectrum management.

“Wireless technology is the future growth driver. Spectrum is the single most important input. Unfortunately, the spectrum management policy has not kept pace with the dynamism of this sector. Even today it is tied to legacy and traditional approach of spectrum management. It is not predictable," TRAI said.