India's department of economic affairs [DEA] has criticised the department of telecom [DoT] for its policy of charging lower rates to rent 3G compared to 2G spectrum.

Indian operators are currently charged 2-6% of their gross revenue to rent 2G radio frequencies.

But the DoT has set a rate of just 1% of gross revenue to rent 3G frequencies.

The fee will also only go effect in the second year of 3G operation, effectively giving operators the first year free.

According to India's Economic Times, DEA secretary Ashok Chawla has sent a strongly worded complaint to the DoT.

He has advised that it would not be possible to differentiate between 2G and 3G revenues, and that telecos are likely to pass off 2G revenues as 3G in order to take advantage of the discount.

Chawla is demanding DoT conduct a review of the policy in co-operation with DEA officials.

Source:telecomasia