Govt may ask Rs 2,764 cr as onetime fee from cancelled licences

The Department of Telecommunications is expected to send notices to telecom operators asking them to pay the onetime charges

Telecom operators who continued operations after February 2, 2012, even after their licences were cancelled by the Supreme Court in February 2012, will have to fork out Rs 2,764.29 crore as onetime licence fee for the period between February 2 1012 and February 15 2013.

The Department of Telecommunications (DoT) is expected to send notices to telecom operators asking them to pay the onetime charges. However, DoT will calculate the fee for companies who have discontinued operations between February 2, 2012 and February 15, 2013, separately.

The onetime charges from February 2, 2012 and February 15, 2013 have been calculated from the spectrum allocated on pro-rata basis based at reserve price for 1800 MHz and 800 MHz approved for the auction held in November 2012.

According to a recent discussion, the DoT is expected to demand Rs 605.02 crore from Etisalat DB Telecom Pvt Ltd, Rs 162.04 crore from Idea Cellular, Rs 389.48 crore from Loop Telecom, Rs 17.96 crore from from S Tel, Rs 463.14 crore from Sistema Shyam Teleservices, Rs 108.90 crore from Spice Communications, Rs 3.22 crore from Tata Teleservices, Rs 513.40 crore from Unitech Wireless (East) and Rs 501.11 crore from Videocon Telecommunications.

A Sistema SHyam teleservices spokesperson said: “We have not received any official communication from DoT.” Spokespersons at Idea Cellular and Unitech Wireless did not want to comment on the issue.

According to a recent discussion, telcos who continued operations after February 2, 2012 will be required to pay the reserve price fixed by the Government for the purpose of conducting auction in November 2012. The reserve price will have to be paid in respect of the period from February 2, 2012 until the respective licences discontinued operations in accordance with its licence conditions and applicable law.

The Government’s calculation is based on the assumption that all the 122 licences that were quashed, continued operations between February 2, 2012 and February 15, 2013.

Further, the licencees, who did not bid in the November 2012 auction or did not get spectrum in the same auction, had to discontinue operations and those who have won spectrum were allowed to continue operations in respective circles where they have acquired spectrum.

Of the companies mentioned above, Etisalat, Loop Telecom, S Tel, Spice Communications have already closed down their operations in India. Videocon and Idea Cellular have acquired fresh spectrum in the November auction for select circles. Unitech Wireless majority stake holder Telenor has acquired fresh spectrum in November auction through a new company.

CDMA operator Sistema Shyam Teleservices also bought fresh spectrum in eight circles from the last auction conducted on March 11.