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2008-4-21 PC Non Paper to Raja

2008-4-21 PC Non Paper to Raja

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Published by Firstpost

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Published by: Firstpost on Feb 24, 2012
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02/24/2012

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April 21, 2008Dear As you are aware, based on your non-paper on spectrum charges,Finance Secretary has held discussions with Secretary, Ministryof Communications & Information Technology. Based on thosediscussions, I enclose a non-paper containing our views onissues relating to 2G spectrum and issues relating to 3G / WiMaxSpectrum.2. After you have had an opportunity to examine the same,may we meet and discuss and reach some conclusions? Theseconclusions could then be presented to the Hon'ble PrimeMinister.With regards,Yours sincerely,Sd/-(P. Chidambaram)Shri A. RajaMinister for Communications &Information TechnologyElectronics NiketanCGO Complex, Lodhi RoadNew Delhi -110 003End: a/a 
 
SPECTRUM ISSUES - NON PAPER Issues relating to 2G Spectrum 
I.
Spectrum Usage Charges
Spectrum usage charge is currently linked to the bandwidth andthe rate of charge is a function of quantum of spectrum allocatedto an operator. DoT, in their communication dated February 08,2008 (copy enclosed) had agreed to change the existing systemin favour of a percentage of AGR based on Circle specific rates,which reflects the scarcity value of spectrum and envisages apremium for circles with higher volumes of business. However,in their present formulation, as indicated in their non-paper, DoTis persisting with the bandwidth linked levy, albeit with a higher percentage charge on each range of bandwidth. DEA is of theview that the revised methodology as indicated in the February8, 2008 letter to DoT should be pursued. The existing rates,proposed rates of DoT and recommendation of DEA in this regardare depicted in the table below: -Currentposition
 
Proposal of DoT non-paper 
 
Proposal of DEA
 
BandwidthRange(MHz)% of AGRBandwidthRange(MHz)% of AGRCircle Category% oAGRUpto 4.42%Upto 4.43%Metro-I (Delhi &Mumbai)8%4.4 6.23%4.4 6.24%Metro-II (Kolkata)8%6.2 8.04%6.2 - 7.25%Category-A8%
 
7.2 - 8.25.5%Category-B6%8.0 10.04%8.2 - 9.26%Category-C4%
 
9.2 - 10.26.5%
 
10.0 12.55%10.2 - 11.27%
 

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