Cancellation of 74 licences can fetch govt Rs 15,000 cr

Cancellation of 74 telecom licences, as recommended by regulator Trai, will free 210 MHz of 2G spectrum which can fetch the government about Rs 15,000 crore at a time when the Finance Ministry is struggling to find new avenues to mop up more revenues.

Trai has recommended cancellation of 74 licences, including Unitech Wireless's 8, Aircel/Dishnet's 7, Etisalat DB's 2, Videocon's 4, Spice's 3, Vodafone's 1, among others.

Going by Trai's recommended circle-wise price of each MHz of 2G spectrum, the government will get a little below Rs 15,000 crore if the spectrum vacated due to cancellation of licences is sold.

Sources, however, said that auction route may even fetch better price to the government.

There are, however, differences between Trai and the Telecom Ministry over the number of licences, issued since December 2006, liable to be cancelled for missing roll-out obligations.

The Telecom Ministry has identified only 15 licences which need to be cancelled as per the licence terms and conditions.

Spectrum will be vacated in the range of 4.4 MHz to 20.1 MHz in different circles, says Trai in its communication to the Telecom Ministry.