Finance Ministry has favoured entry fees for autioning 3G licenses. The fees could be as high as Rs250 crores for each of the metros – Delhi, Mumbai, Chennai and Kolkatta. Each of the “Category A” states (Andhra Pradesh, Karnataka, Mahrashtra, Gujarat and Tamilnadu) are likely to attract fees of Rs150 crores. At these rates the government will be add to the exchequer, Rs4,000 crores from metro circles and Rs3,000 crores from “Category A” circles.

I am sure the already bleeding telcos will not hesitate to pass on the additional fees to their consumers. It is not advisable to impose a flat fees rather government should go for a revenue share model as telcos are now busy expanding their presence in reote villages which is so essesntail for the Indian economy. Bharti-Airtel’s, CEO Sunil Mittal was not in favor of additional fees for 3G services and the issue is widely debated. Your thoughts on entry fees ?

In a separate development the fight and spat between Hutch and Essar over BPL Mumbai continues and the shots coming from Hutch alleging the that the termination notice was wrongful.