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Tuesday, July 15, 2008

Mobile cos may be charged for excess 2G spectrum
Bharti Airtel, Vodafone Essar and Idea Cellular, may have to cough up at least Rs 1,600 crore each, as one-time payment for having spectrum beyond the stipulated 6.2 Mhz in the licence for cellular services (2G). The Department of Telecom on Monday held a meeting with industry representatives to discuss the proposal whereby operators may be asked to pay on Mhz basis for spectrum held beyond what was promised in the licence agreement. While the GSM licence does not mention spectrum beyond 6.2 Mhz, some of the operators, including Bharti Airtel, have been given up to 12 Mhz based on their subscriber numbers.

The new formula being suggested by DoT will do away with the process of allocating spectrum without any upfront fee. This means that an existing operator, such as Bharti, will have to pay for the additional 5.8 Mhz that it already holds in some circles, such as Delhi.

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