The Department of Telecommunications (DoT) has revised the methodology for levying spectrum charges on captive users, rationalising fees paid by such players in order to promote ease of doing business. According to officials, the DoT will now charge for spectrum based on area rather than number of devices.
"We have simplified the entire process and introduced the new concept of a pan-India area-based captive category." "Most captive users' rates have also been rationalised," a DoT official told ET.
The move is likely to benefit captive users such as railways, ONGC, BHEL, and the mining industry, among others. The DoT will also provide such players with a three-month grace period during which no spectrum charges will be levied.
In a statement issued on December 11, the Department of Telecommunication stated, "A construction period of three months is permitted for the purpose of import of the equipment, site preparedness, deployment, etc. and spectrum charges be levied, after three months period from the 1st day of the month of date of issue of letter of intent (Lol)."
The new fees will go into effect on April 1 of next year. Spectrum charges are calculated for terrestrial broadcasting, land mobile service (up to 375 kHz), maritime mobile service, aeronautical service, radar under radionavigation service and radiolocation service, fixed and mobile service (multi-channels multiplexed), and satellite-based services.
