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GSM players oppose 'One-time fee' proposal
By siliconindia
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Friday, 18 July 2008, 19:30 IST
New Delhi: The government's proposal, of the one-time fee on telecom companies, faces great resistance from the GSM based mobile operators. The pitch declared that the companies with more than 6.2 Mhz spectrum shall have to pay a one-time fee.
Mobile operators like Vodafone Essar, Idea Cellular, and Bharti Airtel, has written to Prime Minister Manmohan Singh, expressing their opposition on the proposal. The letter, written as a move of the Cellular Operators Association of India (COAI) mentions, "It would be extremely improper, incorrect and legally untenable for the policies of the Government to be re-written with retrospective effect." It is to be expected that a nod to the scheme will make companies like Bharti Airtel and Vodafone to shed over 
10, 000 crore as they have obtained around 12 Mhz in some circles.
Earlier, it was seen that allegations of haording spectrum has been made to the GSM sector. But it was immediately scratched out by the COAI, who said, "We are deeply disappointed that such allegations are being made. The spectrum has been allocated under the guidelines framed as per terms and conditions laid down under license. There has been no unauthorized allocation, as alleged." In a 3-page letter to the Prime Minister, the COAI said that the cap of 6.2 Mhz was applicable only for start-up initial allocation to new operators.
This one-time fine pitch was not a issue until Amar Singh, a Samajwadi Party leader, suggested the government to ask operators to pay 1,312 crore for every Mhz they hold above the 6.2 Mhz mark. Even companies like Reliance Communications wrote to the Government maintaining that the operators should be asked to surrender excess spectrum or pay for it.
10, 000 crore as they have obtained around 12 Mhz in some circles.
Earlier, it was seen that allegations of haording spectrum has been made to the GSM sector. But it was immediately scratched out by the COAI, who said, "We are deeply disappointed that such allegations are being made. The spectrum has been allocated under the guidelines framed as per terms and conditions laid down under license. There has been no unauthorized allocation, as alleged." In a 3-page letter to the Prime Minister, the COAI said that the cap of 6.2 Mhz was applicable only for start-up initial allocation to new operators.
This one-time fine pitch was not a issue until Amar Singh, a Samajwadi Party leader, suggested the government to ask operators to pay 1,312 crore for every Mhz they hold above the 6.2 Mhz mark. Even companies like Reliance Communications wrote to the Government maintaining that the operators should be asked to surrender excess spectrum or pay for it.
