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Mobile Subscribers Yearwise comparision

DoT shelves plans to impose a one-time charge retrospectively on incumbent operators

February 20, 2012

The Department of Telecommunication (DoT) has reportedly shelved plans to impose a one-time charge retrospectively on incumbent operators who are holding 2G spectrum in excess of prescribed 6.2 MHz limit.

The department instead has decided to impose this fee on a prospective basis for the remaining period of the licences of companies holding additional spectrum. These companies include Bharti Airtel, Vodafone India, Idea Cellular, Bharat Sanchar Nigam Limited etc.

The move is likely to bring respite to the companies by resulting in savings close to Rs 10 billion for BSNL, Rs 80 billion for Bharti Airtel, Rs 50 billion for Vodafone India and around Rs 20 billion for Idea Cellular.

The development, however, is in contrast with Telecom Commission’s clearance of TRAI's suggestion to charge operators retrospectively for the additional 2G spectrum held by them. TRAI had suggested that incumbents be charged Rs 45.72 billion for every MHz they hold above the prescribed limit of 6.5 MHz on a pan-India basis.

The Telecom Commission had ruled that incumbents should pay either the administrated price set by TRAI, or the price discovered in the 2010 sale of 3G spectrum, whichever is higher in a particular region.

However, the department now plans to link the prospective fee to the price that will be determined during the upcoming 2G auctions. DoT has approached the Union Cabinet to take a final call on this issue.

 

 

 
 

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