Cabinet refers one-time spectrum issue to EGoM

Without taking any decision on the proposal to charge a one-time auction-determined fee for spectrum held by existing telecom operators, the cabinet referred the issue to the empowered group of ministers (EGoM).

"The cabinet has referred the issue of one time spectrum fee to the EGoM has to send its recommendations back to the cabinet," a government official said after the cabinet meeting.

The Department Of Telecommunications (DoT) had proposed to levy a one-time spectrum charge from incumbent operators for the remaining period of their licences.

The cabinet has decided to refer the issue to EGoM after the move was opposed by finance ministry, Planning Commission and the department of industrial policy and promotion. The meeting was headed by Prime Minister Manmohan Singh.

According to the sources in the DoT, three proposals were presented to the cabinet. One was to levy one-time fee on all airwaves held by existing telecom companies, the second to impose a fee on airwaves held beyond the start-up spectrum of 4.4 MHz and the third to levy a fee on spectrum held 6.2 MHz.

As of now it is not clear when the EGoM meeting would take place. A meeting scheduled for Monday was postponed earlier and by the evening its new head, agriculture minister Sharad Pawar had recusd himself from the panel.