One-time spectrum fee to be charged above 4.4 MHz

The empowered group of ministers on 2G spectrum has resolved the contentious one-time spectrum fee issue for the upcoming auction, according to a report on CNBC-TV18.

The report quoted Salman Khurshid as saying that the fee would be charged on spectrum above 4.4 MHz.

This would mean that all the big five telecom companies-Bharti Airtel, Idea, Reliance Communications, Tata and Vodafone-will have to pay the fees.

The report also said that the fee would be applicable on a prospective basis.

Nirmal Bang analyst Harit Shah said on the TV channel that the development is in line with expectation and it does not change his outlook for the sector.

The market, however, witnessed a rally in the telecom stocks after the news.

Shares of Bharti Airtel rose 2.7 percent to Rs 273, Idea Cellular 4 percent to Rs 85 and Reliance Communications 3.5 percent to Rs 64.