Spectrum Charges from Merged Companies

Press Information Bureau

Government of India

Ministry of Communications & Information Technology

19-December, 2012 16:07 IST

The Government has decided that the existing telecom service providers be given the option of retaining up to 2.5 MHz of spectrum in the 900 MHz band at the time of renewal of license, subject to payment of auction determined price and further subject to participation and bidding by the holders of 900 MHz band in the auction.

The Government has also decided that:

Where a transferor (acquired) company holds spectrum against the entry fee paid, the transferee (acquiring) company (i.e. resultant merged entity), be required to pay to the Government, the differential between the entry fee, and the current auction determined price, on a pro-rata basis for the remaining period of validity of the license(s).

Intra-service area merger of UAS/CMTS licences will be permitted only when both the licensees have also paid for their respective spectrum holdings in accordance with the Government decision on pricing of spectrum regarding levy of onetime charges.

In case of spectrum obtained through auction, if any, the relevant auction conditions shall apply.

This information was given by Shri Milind Deora, Minister of State for C&IT in written reply to a question in Lok Sabha today.

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MV/RK