DoT alters plan for one-time spectrum charge on telcos
18 Feb 2012
The department of telecommunications (DoT) has dropped plans to impose a one-time charge retrospectively on the established or 'incumbent' telecom operators such as Bharti Airtel, Vodafone, Idea and state-owned Bharat Sanchar Nigam Ltd (BSNL) for all second-generation airwaves they hold in excess of 6.2 MHz.
Instead DoT plans to impose this fee on a prospective basis for the remaining period of the licences of these companies, according to The Economic Times which says it has seen an internal government note to this effect. T
he union cabinet will take the final call on the issue.
The move is expected to offer relief to the tune of Rs10,00 crore to BSNL, while Bharti Airtel may save around Rs8,000 crore, Vodafone Essar about Rs5,000 crore and Idea Cellular close to Rs2,000 crore, the report said citing industry executives tracking the development.
In December 2011, the Telecom Commission, the highest decision making body of the DoT, had cleared a suggestion by the Telecom Regulatory Authority of India (TRAI) that telecom companies be charged retrospectively for their 2G holdings beyond 6.2 MHz. The latest DoT proposal would reverse that move.
Sector regulator TRAI had suggested that incumbents be charged Rs4,572 crore for every MHz they hold above the 6.2 MHz threshold.
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