New Delhi:
The Empowered Group of Ministers (EGoM) on Spectrum, headed by Finance Minister P Chidambaram, will meet today and is likely to decide on the crucial issue of a one-time spectrum fee for existing telecom operators .
The panel had last met on October 3, but could not decide on the one-time spectrum fee issue as it had not received legal opinion from the Attorney General on the matter. Government sources said the Attorney General had submitted his view on Friday. They, however, did not disclose what that opinion was.
Existing telecom service providers will decide on participating in the spectrum auction to be held soon based on the decision taken by the government on the one-time spectrum fee.
The Department of Telecommunication (DoT) had made four proposals to the Cabinet on the - no charge; levy a one-time fee on all airwaves held by existing telecom companies; impose a fee on airwaves held beyond the start-up spectrum of 4.4 MHz; or levy a fee on airwaves held beyond the contracted spectrum of 6.2 MHz.
According to a top DoT official, the department added the option of a one-time auction-determined price for all spectrum held by the operators to create a level-playing field between new entrants and existing players. Existing players were allocated pan-India permits with 4.4 Mhz of airwaves frequencies at a price of Rs. 1,658 crore, but new telecom operators will have to pay a minimum of Rs. 14,000 crore for a similar set of airwaves for pan-India business in the auction, scheduled to start in November.
In July, the Cabinet had referred the matter to the group of ministers. Later in the month, the group had deferred a decision on the matter till the Supreme Court gave its opinion on a Presidential Reference. the top court did that last month (OR was it last wee?) and the government is now free to take a decision in this regard.
The last date for submitting applications for participating in the spectrum auction is October 19.