The ongoing telecom tangle is likely to get murkier. GSM players, who have taken the department of telecommunication (DoT) to court for ?twisting rules to benefit one operator? (Reliance Communications), have found a new ammunition. After dual technology licence and spectrum allocation, it is the mode of spectrum charges that is irking the GSM lobby.
The DoT decision to levy separate spectrum charges for two technologies, GSM and CDMA, has once again led the GSM lobby to allege that the government is favouring Reliance Communications by adopting dual standards and going back on its earlier stand on the issue. They have also alleged that this will cost the exchequer loss of revenue.
Though the move to this effect has backing of the Telecom Commission, the highest apex policy-making body in the DoT, the Telecom Regulatory Authority of India (Trai) and later a DoT committee favoured levying combined charges for GSM and CDMA spectrum.
Separate spectrum charges for two technologies works out cheaper than the combined licence fee on the total revenues as the CDMA players pay lower rate of spectrum usage charges.
While the GSM players have already opposed the move, what may add fuel to the fire is the fact that the DoT has actually deviated from its earlier stand of charging fees on combined spectrum.
According to documents available with FE, a year back the DoT had levied combined spectrum charges on Bharti Airtel. Bharti, which is basically a GSM operator, was holding separate licences for both fixed as well as cellular services in Madhya Pradesh before the introduction of unified access service licence (UASL) in 2004. Under its fixed licence service, the company was providing WLL (mobile) services through CDMA spectrum in far-flung areas of Madhya Pradesh. Later, Bharti migrated to UASL and surrendered its fixed service licence. However, it requested the DoT to allow usage of CDMA spectrum under its another UAS licence to avoid discontinuation of WLL service.
While the DoT allowed the usage of CDMA spectrum, it levied charges on a combined spectrum basis. Bharti made several requests against combined spectrum charges but to no avail. Bharti was later made to surrender the CDMA spectrum as it was not meeting the required subscriber norms.
Now, in a total turnaround from its last year?s stand, the DoT has decided to levy separate spectrum charges separately on Reliance Communication.
Further, the DoT move is against the recommendations of the telecom regulator. Trai in its recommendations, while allowing cross-technology under one licence, had stated that combined spectrum will be taken into account as per the prescribed spectrum charges.
To review the Trai recommendations, the DoT constituted an internal committee, which upheld Trai?s recommendations. However, the Telecom Commission finally decided to levy separate spectrum charges for the two technologies.
The move will benefit Reliance, which is predominantly a CDMA operator and has applied for pan-India GSM spectrum.
According to rough estimates, as a result of the DoT?s move, Reliance will pay about Rs 400 crore less in spectrum charges to the government than in the case if combined levy was made applicable as in case of Bharti in the past.
When contacted, a senior DoT official refused to comment saying the matter was sub-judice at the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). He, however, added all decisions were taken as per the due process of law.