Vodafone Essar has informed the Department of Telecommunications (DoT) that imposing a one-time fee of Rs 45.72 billion for every unit of spectrum beyond the 6.2 MHz limit held by operators will contradict a policy decision taken by the government in 2002, when it decided to award additional spectrum for a higher spectrum usage charge.
However, DoT has remained fixed in its view. In fact, an internal DoT panel has already cleared this proposal, which will require the industry to pay Rs 175.13 billion towards this one-time fee. Vodafone Essar, which will have to pay Rs 17.69 billion under the Telccom Regulatory Authority of India?s (TRAI) pricing formula, had earlier termed the regulator’s proposals as flawed, illogical and discriminatory, while adding that the authority was acting against the interests of operators who were the first to invest deeply to build the sector.
Vodafone Essar also said that any attempt by DoT or TRAI to charge a one-time fee on spectrum beyond 6.2 MHz was legally untenable, as the consideration has already been paid and is being paid in the form of higher spectrum usage.
