Subject: [NEXTEL-1] Spectrum no longer free for Govt

From: [email-masked]
Date: Tue, 10 Feb 2004 12:07:48 -0500

Spectrum no longer free for Govt

G. Rambabu

New Delhi , Feb. 2

MINISTRIES and Government departments and agencies, including
Defence and police authorities, will no longer be able to freeload
on the scarce radio frequency spectrum allotted for their wireless
needs but will have to cough up licence fees and royalties on the
lines of cellular service providers from April 1, 2004.

According to official sources, this decision has been taken to
ensure optimum utilisation of radio frequencies, given the sizzling
growth in mobile subscribers expected in the months to come.

It forms part of the review of the spectrum policy that is being
implemented based on the recommendations of a high level
committee constituted by the Department of Telecommunications
(DoT) jointly with the Ministry of Defence and Home Affairs in
consultation with the Ministry of Finance, Information &
Broadcasting and Department of Space.

The radio spectrum charges presently levied from the
non-government wireless users comprise of two components -
licence fee and royalty charge. Even as the Telecom Regulatory
Authority of India (TRAI) is reworking these rates, at present,
cellular operators shell out spectrum charges to DoT based on
their usage levels as a percentage of their adjusted gross
revenue (AGR).

While two per cent of AGR is collected from service providers
utilising 4.4 Mhz radio frequencies, for higher spectrum allocations
up to 6.2 Mhz, the company pays an additional one per cent of
the AGR.

The cumulative spectrum levy works out to 4 per cent for
companies in the metros who have been allotted beyond 6.2 Mhz.
Royalty is calculated based on the number of frequencies utilised,
bandwidth occupied, number of stations, distance etc.

No royalty or licence fee is however charged from central
government ministries and organisations, while State police
authorities are exempted from payment of royalty but are
charged a licence fee. The move to make them pay for usage of
radio frequencies will benefit the cellular operators who have
been demanding more spectrum allocation.

Until now, since the Government agencies were allotted free
spectrum, they refused to vacate the band, even through they
had no use of it. However in the revised policy, they would now
prefer to vacate the spectrum instead of paying licence fees and
royalties for the same.

Once additional frequency is allotted to the service providers, the
quality of mobile calls is expected to vastly improve with greater
voice clarity and fewer dropped calls.

http://www.thehindubusinessline.com/2004/02/03/stories/2004020301960100.htm
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