Spectrum burden not more than 1 per cent of revenue: Trai

KOLKATA: Telecom regulator TRAI today said the proposed hike in spectrum fees would not be a drain on the revenues of telecom operators, some of whom have raised a hue and cry over it.

TRAI chairman J S Sharma said if rationalisation of spectrum usage charges and licence fees were taken into account, the net impact would be around 0.5 per cent till renewal and not more than one per cent of the adjusted gross revenue after the licence renewal.

He was in the city in connection with a roadshow on telecom tariff and consumer protection.

"The 900Mhz spectrum is a valuable asset of the country and previously it was given cheap for other benefits (indicating to telecom density) and now the sector has also to an extent matured, so telecom operators should pay," Sharma said.

Vodafone has asked the government to reject the regulator's recommendations.

TRAI recommended an over six-fold jump in 2G spectrum prices and also a one-time charge for excess spectrum held by operators over and above the contracted 6.2 Mhz.

Going by this valuation, a pan-India licence would cost Rs 10,972.45 crore and an one-time fee of Rs 4,571.87 crore (all India) per Mhz of 2G spectrum in 1800 Mhz band.