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New Delhi, Feb. 17: Mobile operators are open to paying a separate fee for third generation (3G) spectrum in circles where they do not have these high-speed radiowaves.
The department of telecom (DoT) is fighting a case in the TDSAT (Telecom Disputes Settlement & Appellate Tribunal) against service providers Airtel, Vodafone, Idea and others to stop them from providing high-speed 3G services in areas where they do not own spectrum.
Sources told The Telegraph that in reply to the telecom department’s plea that the government was facing revenue losses because of these arrangements, a few operators have submitted to the telecom tribunal that a separate licence fee could be paid to the DoT.
Mobile operators pay 6-10 per cent of their annual gross revenue (AGR) as licence fees to the government, depending on the circle in which they operate.
Under the new telecom policy, which will be implemented later this year, the fee will be hiked to a uniform 8 per cent of AGR.
Earlier this week, telecom minister Kapil Sibal announced the new telecom policy would not allow operators to share 3G spectrum. The move has dampened the spirits of 2G players who wanted to enter the 3G segment through similar agreements.
The ministry has not clarified whether the new rule is effective retrospectively.
“If 3G spectrum sharing is not allowed, there would be subscale use of spectrum and would also affect the consumer as none of the operators have pan-India 3G spectrum,” said Hemant Joshi, partner of Deloitte Haskins & Sells.
Meanwhile, the TDSAT today deferred the hearing on the case to February 23. Till then, mobile operators can continue providing 3G services in all circles where they have the commercial arrangements.
Having made huge investments to buy high speed 3G spectrum as well as roll out services, operators want to ensure they are allowed to provide these services on a pan-India basis even if they do not have radiowaves for all the circles.
Operators paid around Rs 70,000 crore to get 3G spectrum through an auction held in 2010. However, none of the companies have pan-India spectrum.
Bharti Airtel, Idea Cellular and Vodafone India have entered into agreements with each other to offer their own high-speed services in circles where they do not own 3G spectrum and network.
DoT officials contend that under current telecom rules, while operators can enter into agreements to allow its subscribers to roam from one city to another, arrangements that enable an operator to sell services in a circle where it does not hold network or spectrum are illegal.
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