It could charge telcos at a notional rate with an ad hoc approval from the cabinet
The Department of Telecom (DoT) may give in to telecom companies' (telcos) request for extension of their licenses, which is coming up for renewal later this month.
DoT is working, along with other concerned agencies, on how this could be done while remaining within the legal framework of the National Telecom Policy (NTP) and keeping the state's best interest in mind.
A reliable source in the DoT said extension of permits could be done at a slightly higher than the retrospective charge. The telcos had won their licenses 20 years back through an auction.
"We can establish a notional price and take ad hoc approval from the cabinet or any other platform, so that it is a collective responsibility and not a decision made by any single individual," he said.
The DoT official said such a directive for extension of permit could well come from the court.
Vodafone India and Bharti Airtel Ltd have requested the government to extend their licenses to avoid any disruption in consumer services.
The government may ask the Telecom Regulatory Authority of India (Trai) to arrive at the notional price for the spectrum held by telcos, whose license would be extended. It is working on a pricing formula of a 10% hike on the rate at which the spectrum was acquired by the two telecom incumbents.
The DoT official, however, lamented the industry was holding the government to ransom on the issue of the spectrum availability and it's pricing by consistently proclaiming that spectrum made available to telecom service providers was inadequate.
"They want more spectrum to be made available. Why should the government create a situation where they suffer a loss? If there is surplus spectrum then price will be lower. This will help the industry but would result in a loss to the state," he said.
He said the industry was resorting to arm-twisting tactics by claiming that it was justified in demanding for additional spectrum as it would benefit consumers.
"Higher spectrum prices needn't result in immediate hike in tariff as the companies have 20-year lease period to recover their bidding cost. Also, they can make their payment in phases," the official said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}