To promote ease of doing business, the Department of Telecommunications (DoT) has revised the methodology to levy spectrum charges on captive users, rationalising fees paid by such players. As per officials, the DoT will now be charging for spectrum based on area as against the number of devices earlier.

“We have simplified the whole process and introduced the new concept of area-based pan-India captive category. The rates have also been rationalised for most captive users,” the Economic Times reported.

The move is likely to benefit captive users like Railways, ONGC, BHEL, mining industry etc. The DoT will also give three months grace time for setting up networks by such players and no spectrum charges will be levied for the period.

As per an order issued on December 11, the DoT said, “A construction period of three months is permitted for the purpose of import of the equipment, site preparedness, deployment, etc. and spectrum charges be levied, after three months period from the 1st day of the month of date of issue of letter of intent (Lol).”

The revised charges will come into effect from April 1 next year. Spectrum charges comprises royalty and licence fee and shall be calculated for terrestrial broadcasting service, land mobile service (up to 375 kHz), maritime mobile service, aeronautical service, radar under radionavigation service and radiolocation service, fixed and mobile service (multi-channels multiplexed) and satellite-based services.