The Empowered Group of Minister’s (EGoM) decision to impose a one-time fee of Rs 100 billion on operators holding more than 4.4 Mhz of GSM spectrum and 2.5 Mhz of CDMA spectrum continues to impact the industry.
According to news reports, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) have written to the Department of Telecommunications (DoT) requesting it to pay the amount on their behalf, given their financial health.
Both companies hold excess GSM spectrum in all the circles they operate in. Now, it is believed that DoT plans to discuss the issue with the Ministry of Finance to chalk out a possible bailout package, after obtaining the approval of the EGoM and the Cabinet.
Meanwhile, private operators, too, have expressed their reservations on the issue. As per news reports, these operators will have to pay Rs 40 billion as the one-time fee.
So, industry bodies representing GSM and CDMA players have taken steps to address the issue. The Association of Unified Telecom Service Providers of India (AUSPI) has reportedly written to the Prime Minister of India requesting him to shelve the plan on grounds that it favoured incumbent GSM players.
The Cellular Operators Association of India has written to Kapil Sibal Minister of Communications and IT on the subject. The industry body has stated that the move may result in increased tariffs, which would adversely impact subscribers.
