Private GSM mobile operators said the Government was contradicting itself by imposing a one-time fee for additional spectrum beyond 4.4 Mhz. The Cellular Operators Association of India, in a letter to Communications and IT Minister, Kapil Sibal, said earlier the Government had itself said in Parliament a number of times that the spectrum allocated to operators was according to guidelines in effect at that time.
“There was a conscious decision on part of the Government to allocate spectrum beyond 6.2 Mhz to increase the tele-density while ensuring that the allocated spectrum efficiently utilised and not hoarded,” the COAI said in the letter.
COAI has quoted at least 7 instances wherein the Government has given statements on the floor of the Parliament that additional spectrum was allocated to the operators in exchange for a higher revenue share.
“The premise for a one-time charge on spectrum allocated beyond 4.4 Mhz is arbitrary and legally untenable,” the association said.
Last week, the Empowered Group of Ministers had taken a decision to impose a one-time fee on all operators with more than 4.4 Mhz for the remaining period of the licence. This would put an additional financial burden of Rs 27,000 crore on all the operators.
Dual technology operators, Reliance Communications and Tata Teleservices, have also opposed this fee. The Association of Unified Telecom Service Providers of India has written to the Prime Minister asking the fee to be shelved. “Unilateral changes in terms and conditions of the established contract with operators would send very negative signals to investors about sanctity of contracts in India,” the association said in its letter to the PM.
Public Sector telecom companies — BSNL and MTNL — have not opposed the fee but want the Government to foot their bill.