Another mode of entry in cellular mobile has been as a result of recent 

migration to UASL. In this case the benchmark was set against an entry fees 

decided through auction i.e., the entry fees paid by the 4

th

 Cellular Operator. 

Therefore, even in this case the situation is similar to the earlier CMSPs and 

determining the amount of entry fees causal to spectrum is difficult. 

4.3.1.2 

Annual spectrum charges 

In respect of annual charges, there was clear distinction in the annual fees 

payable for spectrum, the various methodologies over the period of time are 

explained in subsequent sections.  

4.3.1.2.1 

Annual Spectrum License fees for CMTS 

Prior to 27.8.97 

Annual Royalty = M X C X K + 1200 W, where 

M = 4800,  

C = Number of RF channels each of 200 kHz,  

K = constant multiplier = 8 

W = 1000 for every 1000 subscriber or part thereof

27.8.97 till 31.7.99 

Annual Royalty = M X C X K, where 

M = 4800,  

C = Number of RF channels each of 200 kHz,  

K = constant multiplier = 8

(The per handset royalty charge was removed) 

Post 1.8.99 

2% of AGR for spectrum usage upto 4.4 + 4.4 MHz 

3% of AGR for spectrum usage upto 6.2 + 6.2 MHz 

4% of AGR for spectrum usage upto 10 + 10 MHz 

5% of AGR for spectrum usage upto 12.5 + 12.5 MHz 

6% of AGR for spectrum usage upto 15 + 15 MHz. 

In addition, charges have to be paid separately in respect of frequencies used 

for microwave links and backbone. 

Initially, GSM operators were assigned 2 x 4.4 (4.5 in the first phase of 

licensing for 1

st

 and 2

nd

 CMSPs) MHz and a further 2 x 1.8 MHz was  

assigned.  The spectrum allocation was increased in steps to 2 x 10 MHz on 

meeting the prescribed subscriber thresholds. So far 3 GSM

7

 licensees have 

been allocated upto 2 X 10 MHz.  All GSM spectrum beyond 2 x 8 MHz per 

7

 As per data of 31.3.2004 

41