After raising concerns over the DoT’s proposed reduction in spectrum charges to a uniform 3% of annual revenue, GSM operators like Bharti Airtel, Vodafone Essar and Idea Cellular are in a fix over the issue. DoT has proposed that only those GSM operators agreeing to pay a one-time fee for all excess radio frequencies beyond the 6.2 MHz will be eligible for this reduction on spectrum charges.

As of now, all telcos have to cough out 2-6% of their annual revenue to the government as a fee for using the radio frequencies allotted to them.

The spectrum charges must be equivalent to the market value of the extra radio frequencies command. A DoT committee has said that this one-time charge must be established through the upcoming 3G airwaves auctions.