NEW DELHI: After deciding to impose a onetime charge retrospectively on 2G airwaves awarded totelcos in the past, the telecom department now wants the law ministry to decide on the dates from which these charges are applicable.
ET had reported last month that the Telecom Commission (TC), the apex decision-making body of the communications ministry, had cleared the proposal to impose a one-time fee for all airwaves GSM-based telcos held beyond the 6.2-MHz limit and CDMA-based operators have above 5-MHz mark. While incumbent GSM operators have up to 10 MHz in most circles, no CDMA player has more than 5 MHz of airwaves in any region.
The TC said this one-time charge would be based either on a pro-rated 3G-spectrum price, or the administered method determined by sector regulator Trai, whichever was higher. The regulator had priced the 'excess' 2G spectrum held by incumbents at an average of 1.65 times the prices of 3G airwaves and its implementation will force leading GSM operators to shell out over Rs 17,000 crore.
The telecom department has now sought the law ministry's opinion if this one-time charge for airwaves beyond the 6.2-MHz limit is applicable from the time the radio frequencies were allotted. Or, it wants the law ministry to specify, if these charges "could be levied from April 1, 2008, since mobile phone companies had been intimated only in May 2008 that they would have to pay this additional amount".
"Whether only those licensees who had been intimidated earlier should be charged - if so, whether this would be construed as non-level playing field," said the department's internal note that was reviewed by ET. The department has further sought if this charge must be from a prospective date, and if so, has asked the law ministry to specify the date.
The TC had also decided that new entrants, along with the GSM operations of Tatas and Reliance Communications, which currently have only 4.4 MHz of start-up spectrum, should pay an administered fee when they are awarded an additional 1.8 MHz. This is despite the mobile permits of these companies stating that their licence comes bundled with 6.2 MHz of airwaves. The DoT wants the law ministry's opinion if this charge should be imposed retrospectively, or from a prospective date.
The TC also wants legal opinion regarding its decision that telcos pay market rates for the airwaves they hold, when their permits come up for renewal, beginning 2014. It has also asked the law ministry to specify if amendments were required to licensing conditions to impose any of these charges.
New entrants, along with RCOM and Tatas, have cited various rulings of the telecom tribunal as well as that of the DoT and Trai to emphasise that they are entitled to a minimum of 6.2/5 MHz, as this is considered as the contractual minimum and optimal quantity of spectrum for pan-India operations.
"We are deeply concerned about this proposal as we have contractual arrangement with the government for allotment of 6.2 MHz against one-time entry fee and based on that we did our network, financial and marketing planning activities and decided the rollout plans," these operators had said in a letter to telecom minister Kapil Sibal last month.
ET had reported last month that the Telecom Commission (TC), the apex decision-making body of the communications ministry, had cleared the proposal to impose a one-time fee for all airwaves GSM-based telcos held beyond the 6.2-MHz limit and CDMA-based operators have above 5-MHz mark. While incumbent GSM operators have up to 10 MHz in most circles, no CDMA player has more than 5 MHz of airwaves in any region.
The TC said this one-time charge would be based either on a pro-rated 3G-spectrum price, or the administered method determined by sector regulator Trai, whichever was higher. The regulator had priced the 'excess' 2G spectrum held by incumbents at an average of 1.65 times the prices of 3G airwaves and its implementation will force leading GSM operators to shell out over Rs 17,000 crore.
The telecom department has now sought the law ministry's opinion if this one-time charge for airwaves beyond the 6.2-MHz limit is applicable from the time the radio frequencies were allotted. Or, it wants the law ministry to specify, if these charges "could be levied from April 1, 2008, since mobile phone companies had been intimated only in May 2008 that they would have to pay this additional amount".
"Whether only those licensees who had been intimidated earlier should be charged - if so, whether this would be construed as non-level playing field," said the department's internal note that was reviewed by ET. The department has further sought if this charge must be from a prospective date, and if so, has asked the law ministry to specify the date.
The TC had also decided that new entrants, along with the GSM operations of Tatas and Reliance Communications, which currently have only 4.4 MHz of start-up spectrum, should pay an administered fee when they are awarded an additional 1.8 MHz. This is despite the mobile permits of these companies stating that their licence comes bundled with 6.2 MHz of airwaves. The DoT wants the law ministry's opinion if this charge should be imposed retrospectively, or from a prospective date.
The TC also wants legal opinion regarding its decision that telcos pay market rates for the airwaves they hold, when their permits come up for renewal, beginning 2014. It has also asked the law ministry to specify if amendments were required to licensing conditions to impose any of these charges.
New entrants, along with RCOM and Tatas, have cited various rulings of the telecom tribunal as well as that of the DoT and Trai to emphasise that they are entitled to a minimum of 6.2/5 MHz, as this is considered as the contractual minimum and optimal quantity of spectrum for pan-India operations.
"We are deeply concerned about this proposal as we have contractual arrangement with the government for allotment of 6.2 MHz against one-time entry fee and based on that we did our network, financial and marketing planning activities and decided the rollout plans," these operators had said in a letter to telecom minister Kapil Sibal last month.
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