The Department of Telecommunications? (DoT) Wireless Planning and Finance wing has said that the 3G roaming deals inked between operators will have negative revenue implications for the government.
Prior to this, Bharti Airtel, Vodafone Essar and Idea Cellular had entered into 3G roaming alliances that enabled them to offer high-end data services on a pan-India basis (except Orissa).
Bharti Airtel, Vodafone Essar and Idea Cellular had won 3G airwaves in 13, 9 and 11 circles, respectively, and their roaming pacts ensured that customers of these companies could access high-speed data services even in the regions where they do not hold 3G airwaves.
Aircel has a similar deal with Tata Teleservices Limited (TTSL) and offers 3G services in six circles using the latter’s spectrum.
The Wireless Planning and Finance wing has argued that operators pay higher spectrum charges in areas where they hold 3G spectrum, which are used to provide high-end data services. Therefore, the wing holds the view that these roaming deals allows operators to offer data services even in areas where they don’t have 3G spectrum without having to pay the respective spectrum usage charges.
Further, in an internal note, the Wireless Planning and Finance wing said, “Even after providing 3G services through agreements with 3G spectrum holding licensees, they may continue with the payment of spectrum charges applicable for 2G at pre-revised rates. This will have a negative impact on DoT?s revenue. This will also create non-level playing conditions amongst service providers who have obtained 3G spectrum through auction and those who have shared rights of 3G spectrum.?
The wing further added that such agreements may also hamper the future revenue potential from auction of the spectrum. Acceptance of such an action from the licensees will promote cartelisation at the time of future auction,” it said. It also suggested treating these deals as spectrum sharing, which is not permitted under existing rules.
