comscore Telecom department seeks Cabinet approval of the new spectrum liberalization policy

Telecom department seeks Cabinet approval of the new spectrum liberalization policy

The Department of Telecom is expected to approach the Cabinet for approving the changed policy to liberalize spectrum which was allocated to telcos without auction.

  • Updated: April 6, 2016 12:20 PM IST

The Department of Telecom is going to approach the Cabinet to seek its approval for change in policy to liberalize spectrum that were allocated to mobile service providers without auction. “The DoT will approach the Cabinet to take its approval for changing existing policy to liberalize those spectrum that were allocated administratively (without auction),” a source told PTI. The agenda is likely to be taken up at the Cabinet meet tomorrow. Also Read - Vodafone CEO Nick Read to visit India this week; will seek bailout: Report

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The government expects a revenue of Rs 98,995 crore from communication services in 2016-17, which includes realization of demand raised by DoT from telecom operators as one-time spectrum fees. The previous government in November 2012 had decided to charge one-time spectrum fee from telecom operators who were allocated spectrum beyond certain limit without paying for it.

Initially, telecom firms were given 4.4 MHz spectrum along with licence for Rs 1,658 crore for pan-India operations and later they were entitled to get another 1.8 MHz on fulfillment of certain subscriber-base criteria. In November, the government decided that the operators should pay for holding spectrum above 6.2 MHz retrospectively, from July 2008 to January 1, 2013.

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After that, for spectrum above 4.4 MHz, they would have to pay for the remaining period of their licences based on auction held last November. As per this decision, DoT issued demand notice to telecom operators on January 9. The government is likely to get Rs 4,251.83 crore from retrospective charges, and Rs 18,925.82 from prospective charges for excess radio waves held by mobile operators.

In all, around Rs 23,177 crore is expected from levy of one-time spectrum fee. State-owned BSNL will have to pay around Rs 6,912 crore, followed by Bharti Airtel Rs 5,201 crore, Vodafone Rs 3,599 crore, MTNL Rs 3,205 crore, Idea Cellular Rs 2,113 crore (includes Rs 231.5 crore of Spice), Aircel Rs 1,365 crore (includes Rs 14 crore of Dishnet), Loop Mobile Rs 606 crore and Reliance Communications Rs 173 crore.

Later, the DoT added spectrum price of 1800 Mhz and 900 Mhz band for some circles. The government has given option to telecom operators who are not willing to pay the one-time fee to surrender their additional and excess spectrum. However, telecom operators challenged the decision. Later RCom and Tata Teleservices heeded partially to the decision but with a rider that the government will follow the outcome of pending court cases.

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  • Published Date: April 6, 2016 12:18 PM IST
  • Updated Date: April 6, 2016 12:20 PM IST

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