DoT, MoF to talk on spectrum charge issue

Department of Telecom (DoT) will begin talks with finance ministry on spectrum charge issues, including the crucial entry fee for 3G spectrum on an urgent basis to settle the contentious matters within a month.

DoT is going to consult MoF on the issue on the most urgent basis. There is an internal deadline of 4-6 weeks to settle them and only after that could DoT inch towards finalisation of the spectrum policy, official sources said.

Sources said DoT would not separately take up the entry fee for spectrum issue. All finance related issues including the proposal (of TRAI) to reduce the spectrum annual fee from 2-6% to 4% would be taken up with MoF for their views.

Admitting that there could be clash of views over the entry fee issue, officials said there had been no suggestion from MoF to DoT with regard to entry fee for spectrum or auctioning of the same. DoT is taking the first step of consultation as it involves revenue aspects, they said.

No decision, at present, has been taken in DoT on whether or not an entry fee should be fixed and if so, at what level. Many aspects have to be taken into considerations before any decision as it would affect the consumers and the government revenues either way, they said.

Tata group chief Ratan Tata had offered Rs 1500 crore as entry fee for 3G spectrum along with revenue share which has been strongly opposed by Bharti group chief Sunil Mittal and incumbent BSNL. The entry fee for spectrum is zero at present.