Budget 2013: Govt expects lower revenue from spectrum sale

New Delhi: Government expects a lower revenue of Rs 19,440.67 crore from spectrum sale and other related charges in 2012-13, against Rs 58,217 crore estimated in the budget for 2012-13.

For the financial year 2013-14, government expects a revenue of Rs 40,847.05 crore from other communication services, which include receipt from spectrum sale, according to the Budget proposals presented by Finance Minister P Chidambaram today.

[caption id=“attachment_643954” align=“alignleft” width=“380”] In November 2012, spectrum auction attracted bids worth Rs 9,407.64 crore against value of around Rs 28,000 crore. Reuters[/caption]

“Receipts under ‘Other Communication Services’ mainly relate to one-time spectrum charges levied as per the recommendations of TRAI, Auction of 1800 MHz and 900 MHz spectrum and receipts from 800 MHz spectrum,” the budget document said.

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In November 2012, spectrum auction attracted bids worth Rs 9,407.64 crore against value of around Rs 28,000 crore fixed by government for airwaves put for auction.

Most of telecom operators who won spectrum were given option of deferred payment and some also had option to adjust the entry they paid in 2008. The government received a net Rs 1,706.92 crore from auction of spectrum this fiscal.

Government had estimated to garner Rs 26,200 crore, both GSM and CDMA, from one-time spectrum fee. Companies were given the option to make payment in instalments and the first instalment to be paid by all telecom operators during the ongoing fiscal year amounted Rs 8,115.68 crore.

Telecom operators that were asked to pay one-time fee approached court against the order and the matter is still sub-judice.

Department of Telecommunications will start auction of CDMA spectrum from March 11.

PTI