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DoT seeks finance ministry's views on TRAI's recommendations on reducing the spectrum fee

July 15, 2005

Acording to news reports, DoT has sought the finance ministry's views on TRAI's recommendations on reducing the spectrum fee from 6 per cent of the adjusted gross revenue to 4 per cent. DoT has also sought the ministry's opinion on the proposed imposition of a one-time fee for next-generation mobile services. It feels that levying an entry fee may not be a legally sound move as the existing telecom licences permit operators to offer all types of telecom services and does not distinguish between 2G and 3G services. In fact, there is a clause that specifies that there cannot be an entry fee for a new service. However, the Tatas have proposed an entry fee of Rs 15 billion for 3G spectrum, a move opposed by GSM operators. The finance ministry, reportedly, prefers a revenuesharing arrangement.

 
 

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