In these two cities, TTSL has 5 MHz of spectrum but will surrender only 1.25 MHzy. Company executives say 3.75 MHz in these two high data usage markets will be adequate to ensure services like Tata Photon Max, the bulk of whose revenues come from these two cities, are not impacted.
The Tata Photon Max service requires two dedicated carriers of 2.5 MHz.
TTSL would have had to fork out Rs 1,155 crore (Rs 11.55 billion) to the government if it had decided to retain the excess spectrum beyond 2.5 MHz.
Instead, it has paid the first instalment for the excess spectrum it is retaining in Mumbai and Delhi.
The company has got a legal stay against the DoT demand for one-time spectrum charges above 2.5 MHz in the CDMA 800 MHz band, from the high courts at Kolkata and Mumbai.
In its communication to DoT, it asked for 120 days to surrender the excess spectrum, as it had to make investments in operations to ensure the services did not get impacted because of the lesser amount left.
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