NEW DELHI: The Telecom Commission has suggested that companies winning spectrum in higher frequency band, above one gigahertz band like 1800 megahertz (MHz), 2100 MHz, 2300 MHz, should make 50% upfront payment as against existing system of 33% and rest in 10 years after two years of moratorium.
The move is aimed at reducing call drop problem and help the government achieve its Rs.90,000 crore target in the financial year 2016-17 from spectrum auction, sources in the Telecom Commission said. “It will be a challenge,” feels Romal Shetty, telecom head, KPMG.
The Commission, which is the policy making arm of the Communications Ministry, has also decided to go ahead with the base price of Rs.11,500 crore per megahertz of spectrum in all bands across the country suggested by Telecom Regulatory Authority of India (TRAI). This can fetch the government minimum bids of around Rs.5.36 lakh crore, Telecom Commission sources said.
The suggestion will be placed before the Cabinet for final approval, based on which rules for auction will be decided.
For spectrum purchased in below 1 Ghz band like 700 MHz , 800 MHz, 900 MHz , companies will need to pay 25 per cent and rest in 10 years after two years of moratorium.
The panel deferred decision on annual spectrum usage charges and has decided to refer the matter to the Attorney General of India for his views.
The Commission has also suggested laying fiber optic cable to connect Andaman and Nicobar and with wireless connectivity with the islands of Lakshadweep.