Charging for spectrum of existing telcos discriminatory: AUSPI

Writes letter to telecom minister Kapil Sibal on the issue

PTI | October 3, 2012



Telecom industry body AUSPI has opposed a Department of Telecom's proposal to levy a one-time charge on existing operators for spectrum they hold, saying the move was "discriminatory" and violative of licence condition."

The Association of Unified Telecom Service Providers of India in a letter to Telecom Minister Kapil Sibal said the proposal to charge for all spectrum held by telecom operators whose licences were not cancelled by the Supreme Court in the 2G scam "will trigger widespread international default of billions of dollars".

DoT has proposed to charge for all spectrum held by existing telecom players at the rates which new telecom operators will pay in the auction of airwaves due to start in November.

Existing telecom operators were allocated spectrum alongwith pan-India licences at Rs 1,658 crore only while new telecom operator will have to pay minimum of Rs 14,000 crore for spectrum to operate across country.

"The proposal to charge for the existing spectrum for the balance period of licences at auction discovered prices by altering the terms and conditions of the licences unilaterally is illegal, violative of the licence conditions and would create more inequalities and discrimination among the existing operators," AUSPI wrote on October 1.

The proposal of DoT is aimed at creating level playing field between old and new operators but AUSPI said "imposing charges up to 5 Mhz/6.2 Mhz (spectrum) clearly favours one set of operators who were early entrants and consequently have the shortest period to renewal."

AUSPI, which represents firms like Reliance Communications, Tata Teleservices among others, in the letter said that as security for the loans availed, companies have executed tripartite agreement with banks and government (DoT).

It added that under the loan facility agreement if any telecom licence is amended, modified or renewed in a manner or to extent which could be reasonably be expected to have a material adverse effect, the same will treated as even of default.

"According, if one time spectrum charge for remaining validity of licence is implemented, it will trigger an event of default and all lenders will immediately exercise their rights... and call for immediate payment of all outstanding loans," AUSPI said.

The association said that this will trigger widespread international default of billions of dollars with all the lenders situated in countries across globe.

"This will also lead to huge international litigation, and claims for damages against the Indian government," AUSPI said, demanding the proposal of one-time fee on spectrum of existing telecom operators should be dropped.

Comments

 

Other News

How the flora and fauna evolved in the Indian subcontinent

Mammals of India  By A.J.T. Johnsingh and P.O. Nameer HarperCollins India in association with Bombay Natural History Society  

India`s renewable race is moving beyond megawatts

When Shell bought Sprng Energy in 2022, India`s renewable energy market appeared to offer precisely what global energy majors were seeking: scale, growth and a place in one of the world`s largest energy transitions. Four years later, Shell is selling the same business to Aditya Birla Group for an enterpris

Nepal Floods: India keeps close watch on the situation

India`s central government has been keeping a close watch on the situation arising out of the flash flood in Nepal on Wednesday. Union home minister Amit Shah spoke with the chief ministers of Bihar and Uttar Pradesh, the two states that share the border with Nepal, regarding the disaster

UPI completes 10 years of digital payments revolution

The Unified Payments Interface (UPI), launched on August 25, 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), has completed 10 years of transforming digital payments in India. UPI has emerged as the backbone of India’s digi

Here’s an I.D.E.A. for career growth and success

Success in today’s professional organisation is no longer solely determined by academic qualifications, technical expertise or years of experience. While these attributes do matter, organisations increasingly value individuals who demonstrate the right mindset and behavioural qualities. The ability

PM interacts with CEOs, founders of space startups

Prime minister Narendra Modi interacted with CEOs and Founders of 20 Space Startups at Seva Teerth on Friday.   CEOs of leading companies in the space sector working in diverse fields ranging from building rockets and reusable semi-cryogenic launch vehicles, avionics, satelli

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter