Contrary to the GSM operators’ demand of revising licence fees upwards for new players, Reliance Communications chairman Anil Ambani in his third letter to Prime Minister Manmohan Singh has said there is a very strong case for new entrants to be charged a much lower fee than paid by earlier licencees.
Taking GSM operators like Bharti Airtel, Vodafone and Idea head-on, Ambani said the incumbents have already secured a significant long-term competitive advantage for themselves by capturing leading market shares and cornering excessive spectrum.
“DoT should consider reducing the licence fees to be paid by new GSM entrants (including RComm) so as to make at least some headway in terms of providing a level playing field,” he wrote.
Ambani also said the government should immediately recover additional licence fees from private GSM operators for the excess spectrum they have taken beyond the initial 4.4 Mhz, or at worst, beyond 6.2 Mhz, as per their original licences.