DoT favoured dual technology players including RCom, Tata Tele: CAG

Shyam Telelink and HFCL Infotel were the other two operators who benefited from this advantage

Reliance Communi-cations and Tata Teleservices were among the four dual technology operators who got undue advantage after the Department of Telecommunications (DoT) disregarded the recommendations of the Telecom Regulatory Authority of India (Trai) on spectrum usage charges, according to a report by the Comptroller and Auditor General of India (CAG).

Besides the two, DoT also gave undue benefit to two more operators using dual/multiple technology, Shyam Telelink and HFCL Infotel, as they were paying spectrum user charges (SUC) based on the separate allocated spectrum for different technology instead of SUC based on combined total of spectrum, CAG said.

“This resulted in undue benefit to two major telecom operators—Reliance Communications and Tata Teleservices using dual/multiple technology to the extent of Rs 882.06 crore in 2009-10 to 2013-14," said the report. Though DoT accepted Trai’s recommendations of August 2007, regarding grant of dual technology licence and issued letters communicating ‘in principle approval’ for use of dual technology to the licencees within two months, the recommendation regarding the SUC fixation had not been implemented as of October 2014 without specifying any reasons on record.

Also, despite Trai’s recommendations and approval of the EGoM in 2009, DoT decided not to auction the 800 MHz spectrum for enhanced voice data optimised services in 2010 though CDMA operators were providing 3G EVDO services with the available 2G spectrum—800 MHz—without liberalisation of spectrum. While GSM operators had to separately buy 3G spectrum or had to pay for liberalisation of existing 2G spectrum – 1,800 MHz for providing 3G services on 2G spectrum—1,800 MHz, the same yardstick was not made applicable to 800 MHz spectrum holders (CDMA licencees) despite the fact that both the 1,800 MHz and 800 MHz spectrum allocated before November 2012 and March 2013 was bundled with 2G licence.  

“This resulted in non-realisation of upfront charges amounting to Rs 9,626 crore from CDMA operators providing EVDO services,” the report added.