Budget Impact – Higher Spectrum Fees

The Department of Telecom (DOT) has increased spectrum usage charges (SUC) for GSM players by 1% for spectrum held up to 8.2MHz and by 2% beyond 8.2MHz, effective 1 April 2010. A similar hike has been levied on CDMA players with 7.5MHz as the threshold. The hike in SUC charges will hit companies across the industry.

In addition to the DOT levy of higher SUC, the budget proposal to increase diesel charges by Rs 2.55/ltr to Rs 39/ltr will increase the network operating cost of telecom players, especially in rural areas.

Overall, the government will raise $600 mn / Rs 2800 cr from this higher charge. This is how the Top 5 Wireless Operators will be affected by higher Spectrum Charges

  • Bharti Airtel – Rs 100 cr
  • Vodafone India – Rs 550 cr
  • BSNL + MTNL Rs 375 cr
  • Idea Cellular- Rs 307 cr
  • Reliance communications – Rs 214 cr
Author: Webmaster