Department of Telecom may favour TRAI's proposal of reduction in spectrum charges from 6 per cent to 4 per cent of the adjusted gross revenue as it involves no financial hit on the government.
Even as no final decision has been taken on the overall spectrum proposals of the Telecom Regulatory Authority of India, sources said the finance division of DoT has given a go-ahead of the reduction since it involves no outgo for the government.
DoT's audit division is currently looking into the proposal. Operators pay between 2-6 per cent of their adjusted gross revenue as spectrum charges.
Depending upon the spectrum allocation (which determines the percentage of charges), no operator is currently paying more than 4 per cent. GSM operators have been given 6.2 Mhz spectrum and are paying at the rate of 4 per cent, while CDMA operators are paying at the rate of per cent with 2 Mhz of spectrum.
Last fiscal, GSM operators paid over Rs 500 crore (Rs 5 billion) and CDMA players paid about Rs 100 crore (Rs 1 billion) for spectrum and microwave link and backbone charges.
Even as DoT is in the process of examining the recommedations, officials said the ministry would put the draft policy for consultation among stakeholders. The policy forms the broad framework under which spectrum is allocated.
Justifying its recommendations on setting up of a GoM immediately, TRAI chairman Pradip Baijal had said all operators require additional spectrum, which can be available from the existing users (like defence sector). But to move to other alternate bands, the existing users need to buy new equipment.
He had said the existing users could take as many as four-six years to move to the alternate spectrum band. The process for the transfer of equipment is also a long drawn process. Therefore, a high-powered group is needed to sort out the procurement procedures.
© 2026