The timescales for refarming will depend on: 

the type of the existing allocations (e.g. civil or military), 

the economic benefits of refarming the spectrum (these can be to the 

existing user, any potential new entrant and to the national economy), 

the user density within the band (i.e. volume and value of equipment that 

needs to be replaced and/or retuned) , and  

the financial implications for the existing user and any potential new 

entrant. 

6.1.1 Surrender of spectrum 

Another issue that has arisen relates to surrender of existing spectrum by 

Service Providers. As spectrum is a scarce resource, the policy issue under 

consideration is whether there should be an incentive in the form of refunds 

for voluntary surrender of spectrum. 

There are two aspects  

a)  One time entry fees paid 

b)  Annual spectrum charges 

It is easier to deal with the second issue, as the annual spectrum charges 

could be made applicable based on the amount of spectrum held by the 

operator in that year. However, whether any refund is due in respect of the 

one time entry fees is a matter of discussion. The pros and cons are as 

follows: 

Point in favour of refund 

It would provide the operator with an incentive to return the spectrum, thereby, 

reducing the pressure on spectrum; 

Points against refund 

a)  Refund of spectrum is an operator's internal decision and so no 

compensation is due; 

b)  While the operator was given the spectrum, his competitors were 

denied the same and accordingly a refund would mean a revenue loss 

to the Government and denial of services to users. 

c)  It is very difficult to bifurcate the amount of entry fees paid at that time 

between spectrum and service.  

d)  Also, the operator has already used the spectrum for a number of 

years; 

6.1.1.1 

Options for determining the amount of refund 

If a surrender policy were built then it would be necessary to decide on the 

methodology to be used for estimating the amount to be refunded. In case it is 

decided on surrender a refund will be given then the following options exist 

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