From The Sip Trunking Experts

TMCNet:  Cabinet approves one-time spectrum fee

[November 08, 2012]

Cabinet approves one-time spectrum fee

NEW DELHI, Nov 08, 2012 (Mint - McClatchy-Tribune Information Services via COMTEX) -- The Cabinet on Thursday approved the empowered group of minister's (EGoM's) recommendations on the one-time fee for spectrum held by older operators.

The ministerial panel had recommended, in a meeting on 18 October, that existing operators would have to pay for holding spectrum above 6.2 megahertz (MHz) retrospectively from July 2008 till 1 January 2013. They would have to pay for spectrum they hold above 4.4MHz for the remaining period of their licences starting 1 January 2013.

The price of the spectrum would be determined based on the price discovered in the 1800MHz spectrum auction that is scheduled to begin next week. Operators holding spectrum in the more efficient 900MHz band will have to pay twice the reserve price for the 1800MHz spectrum auction as an one-time fee. When the auction for the 900MHz spectrum is held later, the money paid by the operators would be adjusted based on the price discovered in the auction, according to an internal note prepared by the department of telecommunication (DoT) for the cabinet, based on the eGoM's decision.

As reported by Mint, earlier this week, the government is estimated to make a minimum of Rs.30,000 crore from the decision. However, this estimate may come down marginally as the Cabinet decided against charging the fee for CDMA operators for now. A decision on the fee for the spectrum will be taken in January.

The Cabinet decided to defer the decision after telecom companies decided against participating in the auction of spectrum in the 800Mhz band that was expected to start two days after the 1800Mhz band auction concluded. The 1800Mhz band auction is expected to begin on Monday.

The earnings for the government are likely to come further down as the Cabinet has allowed public sector companies Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd exemption from paying the one-time fee.

This decision is likely to be contested by the other telcos affected by the decision in the court.

Communications minister Kapil Sibal also said Tata Teleservices would be allotted start-up spectrum in New Delhi, something the company has been demanding for many years now.

For operators that have spectrum in both the 900MHz and 1800MHz bands, the initial 4.4MHz spectrum that an operator gets for free will comprise the cheaper 1800MHz spectrum.

Operators will be allowed to share the spectrum once it is paid for, but permission for sharing will only be valid for five years. The operators will also be allowed to pay for the spectrum in equated annual instalments at an interest rate of 9.75%, depending on the finance ministry's approval. They can also pay the full amount upfront or prepay the instalments as well as surrender spectrum that they don't want to pay for. The price for the spectrum will be based on the 2001 price of Rs.1,658 crore for pan-India spectrum, indexed at the State Bank of India prime lending rate of 3.75% till 2008.

The government is likely to raise about Rs.1 trillion from spectrum refarming, the 1800MHz airwaves auction and the one-time fee, according to telecom analysts.

___ (c)2012 the Mint (New Delhi) Visit the Mint (New Delhi) at Distributed by MCT Information Services

[ Back To SIP Trunking Home's Homepage ]

Subscribe here for your FREE
SIP TRUNKING enewslettter.

Featured Partner

Featured Whitepapers

SIP Security for the Enterprise
Voice over IP (VoIP) is incorporated into a variety of computer networks, both public and private, and used for everyday transactions and communications among carriers, businesses, government agencies...

Making A Broadband Purchase Decision
Businesses today have many options for broadband connectivity. Clarifying your particular business needs prior to selecting a broadband provider will ensure an optimal match of broadband service to your requirements.

Voice-Optimized Network Delivers Premier Call Experience
Customers equate call quality with business quality. Real-time communication, interpersonal interaction, and the cordial tone of a call center representative can create a positive impression of your business that no email can match.

Featured Case Studies

Business Telecom Expenses Reduced 50%
A small to medium sized company in the midwest was interested in migrating to IP Communications, but in today's economy, they were hesitant to upgrade their communication system due to their perception that the cost would outweigh the benefits.

Multi-State Company Cuts Telecom Costs 50%
A multi-site, multi-state company with extensive monthly long distance fees and toll-free charges did not have adequate broadband for Broadvox SIP Trunking requirements, nor did they have a SIP enabled telephone system.

Discover Leisure Connects Remote Users to its IP-PBX
Discover Leisure is one of the largest resellers of caravans and motor homes in the UK. With 15 branch of?ces all over the country, the company spent a great deal of money every month just on internal phone calls.

Featured eBOOKS

Internet+: The Way Toward Global Unified Communication
Connecting the telephony of the enterprise PBX or Unified Communications (UC) system using SIP trunks instead of conventional telephone lines has been very successful in recent years.

What is SIP Trunking? Edition 2
SIP trunking is becoming more of a focus for service providers. One key issue many service providers face when deploying SIP trunks is NAT, or Network Address Translation, traversal.

What is SIP Trunking? Edition 1
A vast resource for information about all things SIP - including SIP, security, VoIP, SIP trunking and Unified Communications.

Featured Videos

Broadvox VAR Testimonial VAR 1:
Part 1 of the VAR (Value Added Reseller) Partner Program Testimonials for Broadvox...

E-SBCs AS The Demarcation Point:
Ingate's Steve Johnson talks to Erik Linask about the role session border controller plays as the demarcation point at...

Demystifying DPI
How can deep packet inspection protect your SIP traffic as well as your entire network?

Featured Resources

Partner Program Overview:
Over 4,000 VARs, Master Agents, Solution Providers, and Independent IT Professionals trust Broadvox. We offer customized services and solutions to fit seamlessly into any company's business model. And when you partner with Broadvox, every member of our team stands behind you and your customers 100%...

SIP Trunk UC Summit

What's New

Presenting the New Ingate/Intertex Website:
Internet+ is an extended Internet access allowing high quality SIP (Session Initiation Protocol) based real-time person-to-person communication, everywhere and for any application. It applies to both fixed and mobile networks ...

Featured Blogs

Featured Webinars

Secure SIP Trunking:
What You Need to Know

Successfully Deploying Enterprise SIP Trunking:
Tools and Techniques for Overcoming Common Roadblocks

Featured Podcasts

Getting the Most Out of Your SIP Trunks:
Ingate's Steve Johnson and TMC's Erik Linask discuss how best practices forgetting the most out of SIP Trunking services and common pitfalls to avoid.

Featured Datasheets

Ingate SIParator E-SBCs
Adopting SIP is a simple process with the Ingate SIParator, the secure enterprise session border controller (E-SBC). The SIParator makes secure SIP communications - including VoIP,SIP trunking and more - possible while working seamlessly with your existing network firewall.

Ingate Firewalls
Everyone is talking about enterprise usage of VoIP, instant messaging and other types of realtime communications including presence and conferencing.

SIP Trunk Solutions for Service Providers
The award-winning Ingate Firewall and Ingate SIParator deliver a high quality, reliable SIP trunk connection between the customer's IP-PBX and the service provider network, and solve interoperability issues to simplify deployments and support for remote diagnosis of reported issues.