DoT's wing seeks clarifications on dual technology policy

The Vigilance Wing of the Telecom Ministry has sought clarifications on the policy of one-time payment of Rs 1,658 crore paid by firms like RCom and Tatas for dual technology spectrum, making its tough for new players to acquire similar licence.

The DoT in 2007 had allowed dual technology spectrum for offering mobile services -- GSM spectrum to CDMA operator or vice-versa. This had benefitted two major CDMA players Anil Ambani group firm Reliance Communications and Tata Teleservices.

Both these CDMA firms applied and acquired nation-wide GSM spectrum at the cost of Rs 1,658 crore, same as was paid by existing GSM operators.

"...While permitting dual spectrum technology to a licencee, such a licencee must pay a fee equal to the same amount which has been paid by the existing licencees using alternate technology or which would be paid by a new licencee going to use that technology," says the Telecom Ministry.

In this regard it is submitted that "there seems to be some ambiguity. Therefore, government must clarify further or modify to remove the ambiguity, because it could have different interpretation in future," the Vigilance Wing of the Department of Telecom said in a note.

The Vigilance wing's comments come in the wake of a complaint of one MP, forwarded by the CVC in March 2009, alleging that DoT's decision to levy spectrum charges on individual technology/spectrum basis contrary to TRAI's recommendations of combined revenue, thus causing huge benefits to CDMA operators at the cost of State Exchequer.

According to the complaint, DoT had not referred back to TRAI on its recommendations on this issue as the due process requires this procedure to be followed.

On this the Vigilance Wing said "the recommendations of TRAI are not binding on the government. Government considers the recommendations and takes decision, makes policies, amend licences for better conduct of telegraph in public interest."