According to Cellular Operators Association of India (COAI), the cabinet?s decision to levy a one-time fee on spectrum on the existing operators violates the licence conditions.
COAI, which represents incumbent GSM players like Bharti Airtel and Vodafone India, is of the view that the decision runs contrary to the government?s affirmations accepted in both houses of the Parliament, that the spectrum granted to the operators was as per the applicable government guidelines from time to time and it is appropriately charged through spectrum usage fees.
According to Rajan Mathews, director general, COAI the cabinet has decided upon the issue of one-time spectrum fee without giving due consideration to the effect it would have on the subscriber and the operators? finances. He emphasises that the telecom is one of the most heavily taxed industry in the country.
Mathews, says, ?The decision related to the one-time charge is expected to impact the industry with an additional financial burden of Rs 300 billion, which eventually, will be passed on to the consumers in the form of increased prices.?
According to COAI a report published on the Department of Telecommunications? website site clearly demonstrates the decision-making process through which the government decided to charge operators for the spectrum in excess of 6.2 MHz on revenue share basis instead of a one-time licence fee. Mathews shares, ?Now, the government has done a u-turn and decided to burden the industry with both the revenue share as well as the levy of one-time fee.?
