comscore The Comptroller and Auditor General asks Department of Tetecom to reply by June on telecom circle mergers
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The Comptroller and Auditor General asks Department of Tetecom to reply by June on telecom circle mergers

The Comptroller and Auditor General has asked the DoT to reply to its draft report wherein it was alleged that Chennai and Tamil Nadu service areas were "hastefully" merged resulting in "undue benefit

  • Published: May 24, 2014 12:44 PM IST
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mobile-towersThe Comptroller and Auditor General has asked the DoT to reply to its draft report wherein it was alleged that Chennai and Tamil Nadu service areas were “hastefully” merged resulting in “undue benefit” of Rs 2,400 crore to Airtel and Aircel. In its draft report CAG on ‘Hasty Merger of Chennai metro and Tamil Nadu telecom circles’ CAG alleged that the merger resulted in “undue benefits” to telecom operators and denied similar facilities to crores of subscribers in three major states. Also Read - Airtel 5G service rollout: Airtel and Tata Group partner for Made in India 5G network

The government auditor on May 9 said “if DoT has any comments, then those comments should be informed within 6 weeks”. In 2004, the then telecom Minister Dayanidhi Maran had asked the DoT to merge Chennai service area with Tamil Nadu; Mumbai with Maharashtra and Kolkata with West Bengal so that customers are not required to pay roaming charges within a state. Also Read - Jio maintains lead in 4G download speed, Vi in upload in May: TRAI

Later, plans for merger of Uttar Pradesh West and East were also taken up. In 2005, only Chennai was merged with Tamil Nadu. The CAG said there was no reason in the records for leaving out other states from the plan and hence crores of subscribers were bereft of the same benefit subscribers Tamil Nadu got. Also Read - Airtel launches new Rs 456 prepaid plan: Check data, validity, call and other benefits

The DoT allowed telecom licenses of companies operating, at that time in Chennai and Tamil Nadu, Airtel and Aircel, to merge without additional fee. The licenses of these companies also got extended to the later date of any of the two licenses getting merged. “The estimated financial implication due to non-auctioning of spectrum in 900 Mhz (12.4 Mhz of Chennai metro) in February 2014 is about Rs 2,400 crore,” the CAG report said.

When contacted, Airtel declined to comment. No immediate comments could be obtained received from Aircel. The CAG had said that the DoT on its own fixed entry fee for telecom license in Tamil Nadu circle at Rs 233 crore, which were issued along with spectrum, without determining market rate and taking views of concerned authorities. It also said that the issue was pointed to out to DoT in March but its reply is still awaited.

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  • Published Date: May 24, 2014 12:44 PM IST



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