Revenue

License Fee

Introduction

Work relating to collection of License Fee in the form of Revenue Share in respect of cellular and basic services was handed over to CCA offices w.e.f January 2004. The license fee payments which are collected quarterly for a financial year are due on 15th of April, July, October and January. The payment received in advance by 25th March for 4th quarter should not be less than the amount paid for the previous quarter. Since the collection of License Fee is being monitored at the highest level, instant communication of collections received by the CCA office is made to DoT Hqrs. As soon as the collection are received, a report is sent on the same day or succeeding day by FAX followed by a postal confirmation to DoT Hqrs. In addition a monthly report on the collections received during the month is also sent to Hqrs. DoT Hqr. has delegated the work of verification of deduction from Gross Revenue by Licensees on account of PSTN charges and roaming charges paid to other operators and Sales Tax/ Service Tax paid to the Government. The work of verification has been taken up in accordance with instructions.

Spectrum Charges

The International Telecommunication Union (ITU) at the world Radio Communication conferences allocates spectrum frequencies for the use of various countries. Allocations are made on a regional basis and for different types of service. It is mandatory for all administrations to adhere to these allocations. Each member country submits its proposal to ITU, based on their requirements and priorities for opening of the bands. During the conference all the proposals are discussed and decisions are taken for opening of the bands for new services or extension of the existing bands.

Spectrum allocations are necessary in order to ensure interference free operation for each radio service. Each frequency band is shared amongst various radio services. Spectrum charges are based upon the band width used by the operator. Spectrum charges for microwave frequencies in respect of GSM based systems are based on revenue sharing.

DoT has delegated the power to CCA offices regarding collection of GSM spectrum charges on 1 April, 2004, CDMA spectrum charges on 01 April, 2005 and spectrum charges from BSNL/MTNL from 1 July, 2005.

Spectrum is deposited by the operator on quarterly basis in advance. In case the amount paid after self assessment by an operator falls short by over 10 % of the payable spectrum charges, a penalty of 50% of the short payment is payable.