a)  The new charging method be adopted for the entire spectrum; 

b) Revenue share mechanism continues till 10 + 10 MHz, and any 

spectrum beyond this is charged on the new method; 

c)  In spectrum bands where there is no excess demand, the spectrum fee 

could be based on cost recovery.   

d)  There could also be discounts for operations in  rural regions and /or 

usage of spectrum that is less in demand such as 450 MHz spectrum . 

4.6 

Use of surpluses generated by auctions or AIP 

In event that the use of new methodology generates revenues in excess of 

the costs associated with licensing and managing the spectrum, the surplus 

may be wholly or partly hypothecated to support particular national objectives, 

such as the provision of services in rural areas or to provide compensation to 

existing spectrum holders in return for the early release of their spectrum. 

4.7 

International experience on Pricing of spectrum 

Table 4.1 provides the details of spectrum pricing policy in Europe. In China, 

the spectrum is priced at 15 Million RMB per MHz per annum for nationwide 

use and 1.5 Million RMB per MHz for use in a city. Summary of pricing 

formulae in some other countries is provided in Table 4.2. 

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