The Empowered Group of Minister (EGoM) headed by the Finance Minister P Chidambaram is believed to have recommended that the existing operators would be charged one time spectrum fee prospectively, meaning for the years of validity remaining on the spectrum they hold.
 
General G.E. Vahanvati had suggested that a one-time fee be levied, retrospectively from July 2008, on spectrum allotted to telecom companies beyond 6.2 MHz. The one-time fee will be applicable from the date of the cabinet decision
 
After today’s meeting, Telecom Minister Kapil Sibal said that EGoM has taken decisions on all issues, including the levy of a one-time spectrum fee.
 
He said that the EGoM would send its recommendations to the Union Cabinet. The cabinet is expected to take a final decision on 19 October on the suggestions of the EoM.
 
Telecom stocks surged following the announcement. Bharti Airtel Ltd, India’s top mobile-phone operator, gained 2.16%, while Idea Cellular Ltd, the fourth largest by subscribers, surged 4.09% in afternoon trade. The benchmark Sensex index was down 1.09%.