Telecom ministry panel to review Trai plans

The Telecom Ministry has set up a panel to look into mobile firms' concerns over the sector regulator's proposals, including levying a one-time fee on 2G radio spectrum, a government statement said on Wednesday.

The panel was formed after Telecom Minister Andimuthu Raja met with representatives of the firms earlier on the day.

India's telecoms regulator in May called for carriers to pay a one-time fee for high-bandwidth 2G radio-spectrum that they won several years ago based on the recently-determined third-generation (3G) spectrum price.

The regulator's proposals has drawn howls of protest from carriers, with companies including market leader Bharti Airtel urging the government to reject them.

The proposed fee for spectrum beyond the contracted 6.2 Mhz would cost top mobile firm Bharti Airtel Rs 4,000 crore ($850 million), while third-ranked Vodafone Essar would have to pay Rs 1,400 crore, a lawyer representing them said in May.

The panel will finalise views on the regulator's proposals and refer them to the Telecom Commission, the highest decision-making body within the ministry, the government statement said.