Tele cos to pay one-time fee for spectrum over 6.2 mhz

Here is a verbatim transcript of Nayantara Rai's comments on CNBC-TV18. Also watch the accompanying video.

Telecom companies will have to shell out big bucks for additional spectrum. Telecom minister A Raja said that not only would the annual fee of these operators would be increased, but the exchequer would stand to make Rs 4000-5000 crore as a one time fee for spectrum allocated over 6.2 mhz.

A Raja, Communications and IT Minister announced that Bharti Airtel would have to pay a one time fee for spectrum above 6.2 mhz in 9-10 circles. Analysts say this could be anywhere between Rs 500-2000 crore. Idea would have to shell out the one time fee for 7 circles post it acquisition of Idea. Vodafone would have to pay for 8 circles, Aircel for 2 circles and BPL for 1 circle.

Even government owned companies MTNL and BSNL may have to pay this fee. According to analysts, margins of telecom companies would not be impacted from the one-time fee as it's likely to be amortized. But what could hurt the companies' margins is Raja's decision to increase the annual fees. On the issue of government not auctioning 2G spectrums to new operators like Swan, Unitech Wireless and Loop, Raja defended his decision.

A Raja, Communications & IT Minister said, "This controversy arose after Unitech Wireless sold 60% stake to Telenor for Rs 6100 crore when it had paid just Rs 1650 crore for telecom license for 22 circles. According to analysts the exchequer has lost out on Rs 60,000 crore by not auctioning spectrum.