SC to decide on hike in microwave spectrum fees for pvt telcos

The Supreme Court would hear Department of Telecommunications' (DoT) plea over an increase in microwave spectrum charges collected from private telecom operators, which was set aside by the sectoral tribunal TDSAT.

A three-judge bench headed by the Chief Justice S H Kapadia today admitted the petition filed by the DoT challenging the orders of the telecom tribunal TDSAT.

However, the bench did not stay the order of the TDSAT, which had quashed the government's order increasing microwave spectrum charges unilaterally.

Passing an order on April 22, 2010, the Telecom Disputes Settlement and Appellate Tribunal, had set aside an order by the Joint Wireless Adviser-- outside of the Wireless Planning & Coordination Wing (WPC) of the DoT-- on increasing the Microwave charges.

The tribunal said that such increase can be only through the WPC of the DoT, as per the procedures laid down under the Indian Telegraph Act, 1885.

"The executive orders do not partake to any statutory rules framed under the Act. Clause 18.3.2 of the UASL licence provides that authorisation of frequencies for setting up microwave links by cellular operators and issue of licences should be separately dealt with WPC Wing as per the existing rules," had said the TDSAT.

Microwave links are airwaves in lower frequency bands used in the back end of a mobile network by all cellular operators for connecting their base stations. It is also used to carry long-distance traffic from one circle to another.

Though optical fibre cable is also used for connectivity where the traffic is heavy, microwave links are cost-effective and quicker to roll out.

This is different from the GSM spectrum which operators use for transmitting calls to the end consumer. The government takes a fee in the form of revenue share from the operators for the microwave links in addition to the GSM spectrum.

Passing an order on November 11, 2006, the DoT had increased the Microwave spectrum charges up to 3.95% of the Adjusted Gross Revenue (AGR) of the telecom operators.

This was challenged by the GSM lobby group COAI and other operators including -- Bharti Airtel, Vodafone, Aircel and Reliance Telecom and BPL Mobile -- contending that the DoT can not unilaterally modify the AGR and put Microwave spectrum under it.

They further contended that operators had agreement with the DoT over AGR and that the spectrum charges were subject to the provision of a contract and could not be altered by the government unilaterally.

TDSAT also agreed with them and said, "The office orders are not rules, but are merely circular letters.  There is furthermore nothing on record to show that these circular letters were issued by the authority, who could frame the rules."