TRAI okays DoT request to hike spectrum usage charges

It is a move that is not going to go down well with the GSM lobby but it could add about Rs 1,500 crore to the government's kitty.

It is almost certain that spectrum usage charges will increase. The hike could happen as early as this Friday. The telecom regulator has given a go-ahead to the DoT to hike the levy by an additional 1-2% across various slabs. DoT had earlier written to the TRAi seeking its views on a hike in spectrum usage charges over and above the one recommended by the regulator.

In its reform prescription last year, the regulator had recommended no change in these charges for upto 8 MHz spectrum blocks. For further blocks, the regulator wanted the levy to be increased by an additional 1% across slabs. Now, the DoT wants to increase it by another 1% and that too even in slabs, which TRAI originally left untouched.

In its letter dated July 15, TRAI has approved this new proposal citing the larger interest of speedy decision-making. But TRAI says the issue needs to be looked in totality and not as a piecemeal revenue mobilisation exercise.

“They had asked us for an explanation. We answered them and we agree with them. We have requested to them that all the taxes and levy fee charges should be seen in totality,” said Nripendra Misra, Chairman, TRAI.

The DoT had also sought the regulator's opinion on the imposition of a onetime spectrum acquisition fee for allotment beyond 6.2 MHz. TRAI, in its earlier recommendation, said such a fee should be imposed only on allotments of 10 MHz and beyond and has now refrained from giving its observation seeking more details from the department. The telecom commission, which is the apex decision making body within the DoT, is scheduled to meet this Friday to take a final call on the matter.

This move could fetch the government additional revenues to the tune of Rs 1,500 crore and is likely to be met with stiff opposition from the GSM lobby.