It’s time to pay up for old telecom operators like BSNL, Airtel, Vodafone and Idea, which got spectrum free above their contractual limit of 6.2 Mhz. On Wednesday, Trai recommended that these companies be made to pay `4,571 crores for every MHz of spectrum they hold on a pan-India basis over the contractual limit of 6.2 Mhz.
This means additional revenue of `16,000 crores for the government if it accepts these recommendations, an analysis by Emkay Global Financial Services shows. BSNL, which holds the maximum amount of additional spectrum, will have to pay `7,000 crores.
The CAG had criticised the way spectrum was given free beyond 6.2 Mhz. BSNL has excess spectrum in 19 cricles (61 Mhz), Bharti in 13 circles (32 Mhz), Vodafone in seven circles (19.6 Mhz), Idea in six circles (12.6 Mhz), MTNL in two circles (12.4 Mhz), BPL in one, Reliance in one, Aircel in one and Spice (now Idea) in one, the CAG report said.
These revised prices are applicable with effect from April 1, 2010 on a pro-rata basis depending upon the number of years left for licences to expire. Trai said any spectrum licence coming up for renewal would have to be paid for according to the new prices.
The new players will have to pay `1,769 crores per MHz for spectrum over 4.4 MHz till 6.2Mhz on an all-India basis. The old players got this additional 1.8 Mhz free of cost.
Trai also said if the department of telecom accepted its earlier recommendation to cancel 74 licences (mostly new players who were issued licences in 2008), the government should auction the freed spectrum.
As per the new value given to spectrum, a pan-India 2G spectrum will cost `10,972 crores for 6.2 Mhz, compared to just `1,650 crores charged by Mr Raja in 2008 from new players.
Telecom shares fell on Wednesday following the Trai announcement.