DoT's 2G pricing proposal may lead to Rs 20,000-cr loss

The proposal of the Department of Telecommunications (DoT) to charge for additional spectrum beyond contractual limit from incumbent GSM players on a prospective basis, rather than retrospectively, would lead to a loss of about Rs 20,000 crore to the government, according to CDMA operators’ association, Auspi.

In a letter to Communications and IT Minister Kapil Sibal, Auspi said the availability of additional GSM spectrum beyond the contracted 6.2 MHz had provided a competitive edge to the incumbent GSM operators with respect to capital cost, faster rollout and capability to offer low tariffs. It had also led to delays in allocating even start-up spectrum and the contracted spectrum to newer operators, thereby limiting competition and creating non-level playing field.