Finance Ministry has favoured entry fees for autioning 3G licenses. The fees could be as high as Rs250 crores for each of the metros – Delhi, Mumbai, Chennai and Kolkatta. Each of the “Category A” circles (Andhra Pradesh, Karnataka, Mahrashtra, Gujarat and Tamilnadu) are likely to attract fees of Rs150 crores. At these rates the government will be add to the exchequer, Rs4,000 crores from metro circles and Rs3,000 crores from “Category A” circles.
In the best interest of the consumer, it is not advisable to impose flat fees, rather the government should go for a revenue share model as telcos are now busy expanding their presence in remote villages which is so essesntail for the Indian economy. Bharti-Airtel’s, CEO Sunil Mittal was not in favor of additional fees for 3G services and the issue is widely debated. Your thoughts on entry fees ?
