Should the entry fee for a pan-India telecom licence be raised from the existing Rs 1,650 crore or remain the same?

After divisions within the industry over the matter, now it?s the telecom commission–the apex policymaking body on telecom matters?which is sharply and passionately divided over the issue, with member-finance Manju Madhavan favouring a revision and chairman DS Mathur strongly opposing it.

Reacting to a proposal from Madhavan suggesting that the licence fee be reviewed, Mathur, who is also department of telecommunications secretary, noted in the file that, ?The matter of entry fee has been deliberated in the department several times in the light of various guidelines issued by the department and recommendations of Trai. And, accordingly a decision has been taken that entry fee need not be revised.?

As if admonishing the member-finance, he goes on to state, ?On the above lines, (the) secretary telecom has also replied to the finance secretary?s letter. Member finance should have checked the facts with the secretary telecom before putting up the note on the file.? Strong words, indeed.

Clearly, the issue of licence fees stirs up strong passions. Mathur also observed in his file noting that ?these type of continuous confusions observed on the file, whoever be the officer concerned, does not show any legitimacy and integrity but only their vested interests?. Making an even more caustic remark, Mathur noted, ?Concerned officers have neither up to date knowledge of unified access service licence (UASL) guidelines nor have bothered to go through the file.?

Madhavan had earlier put up a proposal favouring a revision, stating, ?Since the rates have not been revised and the finance secretary has raised the issue, I am of the view that this issue should be examined in depth before any further steps are taken in this matter.? Madhavan had made these observations on receipt of a letter from the finance secretary wherein concern was expressed that the licence fee was based on 2001 bids.

When contacted, Mathur denied any differences with the member-finance.

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