The exchequer has lost around R1,650 crore in spectrum revenues due to the department of telecom?s (DoT) inability to raise demands from nine
telecom operators to pay a ?service continuation fee?, according to the director-general of audit (post and telecommunications).
As per the Supreme Court’s directions, telecom service providers, who were allowed to continue operations after scrapping of their licences by the February 2, 2012 judgment, were required to pay a reserved price fixed for the licences in the first round of the auctions held in November 2012 as a ?continuation fee?.
For operators who did not participate in the November 2012 and March 2013 spectrum auctions, or were unsuccessful in the auctions, the fee would be calculated from February 2, 2012 to the date of discontinuation of operations. For operators such as Telenor, Videocon, Idea and Sistema-Shyam, who won spectrum in these auctions, the fee would be calculated between February 2, 2012 and the date of receiving their new licences.
However, according to the auditor ?even after lapse of more than 6 months from the orders of the Supreme Court, no demand has been raised by DoT to realise the reserve price due from the operators concerned.?
The government has budgeted non-tax revenues of R40,000 crore this fiscal from sale of spectrum, usage charges and other fees.
It is betting on revenues generated from the telecom sector to plug part of its burgeoning fiscal deficit.
?The total amount recoverable from the nine operators who continued operations beyond February 2, 2012 worked out to R1,648.91 crore calculated on the basis of reserve price fixed by the government for purpose of conduction November 2012 auctions,? said RB Sinha, director-general of audit.
The government auditor also said that DoT ?has not initiated any action to withdraw the assigned spectrum from operators whose licences were quashed?.
While 122 licenses belonging to nine telecom operators were cancelled by the apex court last year, only 4 operators ? Telenor, Videocon, Idea and Sistema-Shyam ? won spectrum in the subsequent November and March auctions and started fresh operations.
The government is set to sell 403 megahertz of 2G spectrum (the entire quantum of radiowaves freed by cancellation of 122 licences) in an auction starting January 23.
In a reply to the auditor’s query on withdrawal of spectrum from quashed operators, DoT said the onus of compliance lies with the operators. However, according to the auditor, it is DoT’s responsibility to raise demand to recover the continuation fee and spectrum as it is the ?license-issuing authority?.