Telecom Commission to meet to consider one-time charge for extra spectrum

B D Narayankar & Anmol Khurana

Press Trust of India

New Delhi, July 3: Amid differences in the industry over major issues, including charges for extra spectrum held by incumbent operators and other related matters, the Telecom Commission, the decision-making arm of the DoT, will meet this week to consider the report of an internal committee.

According to sources, the internal committee has accepted the various recommendations made by TRAI in its report on “spectrum management and pricing”, but on crucial matters like charging for extra spectrum held by old operators and re-farming of spectrum, the committee has either sought additional information or deferred the matter.

The issue of charging for extra spectrum beyond the contracted limit of 6.2 Mhz by operators like Bharti, Vodafone and Idea in several circles and re-farming of spectrum, especially in the 900 Mhz band, has huge financial implications for the exchequer.

As per a CAG’s report as well, the extra spectrum held by old cellular operators may have caused a loss of about Rs 37,000 crore. TRAI has given recommendations on the basis on which these service providers should be charged.

Sources said the Telecom Commission would take a decision, which may subsequently be placed before the Cabinet.

Re-farming of spectrum may be part of the New Telecom Policy, 2011, but a decision has to be taken now as this requires a separate fund to accommodate various agencies vacating spectrum by other means of communication like optical fibre.

“Even telecom regulator TRAI had recommended laying out a framework for re-farming of spectrum without any further delay and to create of separate funds for the same,” according to an internal DoT communication.

This would, however, require detailed guidelines in place immediately, as many licences will be due for renewal in the next 3-4 years and TRAI has recommended that it (re-farming) should be carried out at the time of renewal of licences. Some of the old operators like Bharti and Vodafone have spectrum in 900 Mhz and need to be converted into 1800 MHz.

TRAI in its recommendations had said this is the time to look forward and plan spectrum re-farming to rationalise and release large chunks of more useful spectrum for 3G and future technologies.

Similarly, another important issue of higher spectrum usage charges for spectrum beyond the contracted limit of 6.2 Mhz is being deferred time and again on the ground that the issue is sub judice.

Any delay in this is causing a huge financial loss to the exchequer, sources said, adding that the DoT can implement the spectrum usage charge subject to the outcome of court cases.

The Telecom Commission is also likely to discuss other recommendations of TRAI on matters relating to spectrum and its management, sources said.

Links:

http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2155740.ece

http://ibnlive.in.com/news/tc-to-consider-onetime-charge-for-extra-spectrum/164622-3.html

http://www.governancenow.com/gov-next/egov/tc-meet-consider-one-time-charge-extra-spectrum