Finance Minister favours entery fees for 3G licenses
Finance Ministry has favoured entry fees for autioning 3G licenses. The fees could be as high as Rs250 crores for each of the metros – Delhi, Mumbai, Chennai and Kolkatta. Each of the “Category A” states (Andhra Pradesh, Karnataka, Mahrashtra, Gujarat and Tamilnadu) are likely to attract fees of Rs150 crores. At these rates the government will be add to the exchequer, Rs4,000 crores from metro circles and Rs3,000 crores from “Category A” circles.
I am sure the already bleeding telcos will not hesitate to pass on the additional fees to their consumers. It is not advisable to impose a flat fees rather government should go for a revenue share model as telcos are now busy expanding their presence in reote villages which is so essesntail for the Indian economy. Bharti-Airtel’s, CEO Sunil Mittal was not in favor of additional fees for 3G services and the issue is widely debated. Your thoughts on entry fees ?
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[...] If TRAI is adamant on its pricing structure at Rs85crores/MHz then not many cellcos will come forward or they may opt to start in fewer circles(Metros) and then expand gradually. Tata’s have asked for a flat fees of Rs1500 crores while Reliance Telecom aligned itself with COAI and is seeking Rs150, Rs100 and Rs50 crores for Metros, Circle A and Circle B respectively. If TRAI manages to sell the spectrum at theis price to atleast four all India mobile operators, then P.Chidambaram is a happy man with $32 Billion in his pocket [...]
[...] The negotiations table is now split 4 ways as CDMA operators, Tata’s and Reliance are representing in their individual capacities. COAI representing the GSM lobby and the government presiding as the auctioner. Tata’s have offered Rs1500 crores for all India 3G spectrum license though it is not clear about how many MHz channels are requested. While Anil Ambani controlled Reliance Telecom has offered little over Rs1500 crores for all India 3G spectrum and now COAI with ridiculously low bid of just Rs300 crores for an all India footprint. [...]