Under the UASL regime, operators need to pay a licence fee of 10, 8 and 6 per cent of the AGR for metro and Category A, B and C service areas, respectively. GSM operators pay spectrum charges on a revenue-share basis, starting from 2 per cent of AGR for spectrum up to 2x4.4 MHz. From 4.4 MHz up to 6.2 MHz of spectrum, they need to pay additional charges at 1 per cent of AGR, and beyond 6.2 MHz, a further 1 per cent is charged. Similarly, CDMA operators pay spectrum charges on a revenue-share basis, starting from 2 per cent of AGR for spectrum up to 2x5 MHz and for 5 MHz to 6.25 MHz, they are required to pay additional charges at 1 per cent of AGR. Beyond 6.25 MHz and up to 10 MHz, another 1 per cent of AGR is charged.

For long distance and internet services, annual licence fee (including USO contribution) is 6 per cent of AGR. However, the licence fee paid by an ISP is subject to a minimum of Rs 50,000 and Rs 10,000 for Category A and B service areas. A look at the licence fee and spectrum charges paid by the top six operators in India as part of their AGR in 2008.

(Rs million)