Telecom Commission recommends flat rate for spectrum use

Telecom Commission recommends flat rate for spectrum use

The Telecom Commission of the government of India has recommended three options to the empowered group of ministers (EGoM) on telecom for spectrum usage including a flat rate for spectrum use by service providers in the country.

In the first option it said that the government can charge a flat fee of 3 per cent on all spectrum currently held by the service provider or that to be bought in the future. The second option is to charge differential fee of 3-5 per cent for airwaves that are already held by the service providers and 5 per cent for new spectrum and the third option recommends charging 3 per cent for new spectrum and differential pricing for existing spectrum.

The government officials have said that the ministers might approve the first of the third option as it will be easier to implement in the telecom industry. The first option will offer better earnings in the long run and lesser cost in implementation. It is also believed that the GSM or CDMA operators might strongly oppose the third option. The firms were demanding the changes to the differences over spectrum.

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