4.8 

Summary of pricing options 

New entrants 

Additional Spectrum Additional Spectrum 

to existing operators 

to existing operators 

Up to 10 + 10 MHz  Beyond 10 + 10 MHz

and within the 

specified time frame 

One time 

Auctions 

Administrative 

Auction 

entry 

AIP 

Pricing 

Administrative 

fees 

Cost 

Cost Recovery 

Pricing 

Recovery 

where there is 

Cost 

where there 

no competition 

Recovery 

is no 

Increased 

where there is 

competition 

revenue share 

no 

Market 

competition 

based 

Increased 

benchmarks 

revenue 

share 

Annual 

Revenue 

Revenue 

Revenue 

Charges 

Sharing 

Sharing 

Sharing 

AIP 

AIP 

AIP 

Cost 

Cost recovery 

Cost recovery 

recovery for 

for all 

for all 

all spectrum 

spectrum 

spectrum 

4.9 

Spectrum Charges and processing for other Terrestrial Wireless 

Links 

Telecom operators including ISP's and IP II operators, as well as corporate 

customers have raised the issue of high spectrum royalty charges, the 

structure of charge determination, and hurdles in the form of procedural 

delays for spectrum allocation, siting clearances and other formalities.  

Promoting efficient usage of such technologies is important to the quick and 

cost effective spread of internet and broadband, both for commercial and 

residential users.  The issues pertaining to the last set of hurdles have already 

been addressed by the Authority in its Broadband Recommendations, while 

the first two will be discussed in this Consultation process. 

The current model used for pricing of this spectrum is based on the equation 

R=MxWxC, where R is the upfront annual payable royalty amount, M is 

determined by the distance the clearance is being sought for, W is determined 

by the amount of frequency being allocated, and C is the number of RF 

channels used (twice the number of duplex RF channel pairs).  Both M and W 

are determined by range slabs, such that the multiplier increases significantly 

as soon as the requirements for the operator cross into the next slab.  Details 

can be found in Annexure G.  In addition to payment for spectrum, there is 

also an additional Rs. 1,000 per additional antenna beyond the first two within 

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