Expenses in the telecommunications industry

Expenses in the telecommunications industry can be classified under three headings:

Operating expenses:
Operations (generator-running expenses) and maintenance of the tower
Mobile termination charges of Re 0.13 - Re 0.30 per minute for connecting to some other wireless service provider's network
Fixed termination charges of Re 0.19 - Re. 0.28 per minute for connecting to some other wireline service provider's network
Average carrier charges of Re 0.16 - Re 0.72 per minute for carrying a call on some other service provider's optical fibre

Investing expenses:
Setting up towers: Around Rs. 1 lac for a roof-based tower and around Rs. 3 lacs for a ground-based tower
Spectrum purchasing fixed cost (License fee)
Access charges

Financing expenses:
License fee : 6-10% of aggregate revenues
Spectrum charges : 2-6% of revenues
Contribution towards Universal Service Obligation Fund (USOF) : 5% of revenues