DoT lowers one-time charge for spectrum

Written By Unknown on Selasa, 08 Oktober 2013 | 21.43

KOLKATA: The telecom department (DoT) has lowered the proposed one-time charge for airwaves held by nine mobile phone companies whose permits were quashed by Supreme Court in February 2012, according to an internal telecom department document seen by ET.

Instead of the Rs 2,764.29 crore originally demanded earlier this year, DoT now wants them to fork out Rs 1,989.18 crore as a one-time levy for airwaves held since their cancelled permits had remained valid till February 15, 2013.

Last December, the Cabinet had approved the recommendation of a panel of ministers to impose a one-time fee on operators -- both prospectively and retrospectively -- for the airwaves they currently hold. This charge came into effect from January 1, and all leading companies have challenged this fee in court.

The telecom department is of the view that the retrospective component of this charge also applies to the nine companies whose licences were quashed in February last year.

Accordingly, in case of eight out of the nine operators whose permits were quashed, DoT has provisionally computed one-time airwave charges by pegging licence validity till February 15, 2013, since there is no information on these companies subsequently inking unified licences.

But in Videocon Telecommunications's case, the licence validity period has been pegged at March 3, 2013, the date prior to the operator signing its telecom licences for Bihar, Gujarat, Haryana, Madhya Pradesh, UP-East and UP-West circles.

Unitech Wireless, or Uninor, will take the biggest hit as it may have to shell out Rs 515.63 crore, followed by Sistema Shyam Teleservices at Rs 490.96 crore, Videocon Telecommunications at Rs 478.09 crore, Idea Cellular at Rs 162.17 crore, Loop Telecom at Rs 125.37 crore, Spice Communications at Rs 109.19 crore and Etisalat DB Telecom at Rs 94.19 crore.

Tata Teleservices and STel have also been asked to cough up smaller sums of Rs 2.99 crore and Rs 10.29 crore, respectively.

The one-time charges have been calculated for spectrum allocated on a pro-rata basis based on the approved reserve price of airwaves in 1800MHz and 800MHz band auctioned last November.

The telecom department has made provisional demands to avoid litigation, since final advice of its legal advisor is awaited on the period of operation and quantum of spectrum to be charged.


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