Unitech Wireless and Sistema Shyam TeleServices Limited (SSTL) have expressed concerns over the Telecom Regulatory Authority of India?s (TRAI) recently released draft responses on the proposed exit policy.
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As per the document, the regulator plans to suggest to the government that the current rules of non-refunding of the entry fee once paid by operators should continue.
As per the existing rule, the one-time entry fee paid by operators for acquiring licences is not returned to operators in case they lose or surrender their permits. However, in the wake of recent Supreme Court?s verdict to revoke 122 controversial licences issued in 2008, some of the affected operators had suggested fees be refunded. Alternatively, they have requested that the onetime charges that they paid be offset against any payment due with regard to the upcoming 2G auction.
TRAI in its draft response paper has also stated that it would recommend to the government there is no need for a separate exit policy and continue with rules that allow a telecom licensee to surrender licences by giving notice of at least 60 days.
Unitech and SSTL have expressed reservations on both these clauses.
SSTL has argued that the Supreme Court?s decision to cancel various licences was based on an ?arbitrary? government policy. The operator added that the companies under the scanner were not at fault as they had merely followed the established rules.
So, the company?s take on the issue is that the companies? entry fee ought to be refunded. In the event that they bag spectrum in the upcoming auctions, the amount should be adjusted against the new fee.
Meanwhile, Unitech Wireless has said that an exit policy was required, as several situations may arise after the spectrum auctions. For example, a company may not be able to sustain its telecom business, in which case, an exit policy ought to be available to return the spectrum to DoT.
