The Hindu Business Line : 3G fee may go to Cabinet

New Delhi, Dec. 19 The Department of Telecom may refer the issue of levying administrative charges on 3G mobile operators to the Cabinet Committee on Economic Affairs. The levy was proposed by the Telecom Regulatory Authority of India. The decision is likely to be left to the Cabinet since DoT does not agree with the regulator’s proposal.

The Telecom Commission, which is the apex decision-making body of DoT, met on Friday to consider the proposal. According to sources, DoT has opposed levying the additional fee on the grounds that it will get factored in by the operators when they bid for the spectrum.

DoT has estimated that the total income from the auction could come down by as much as Rs 5,000 crore if the administrative charges are levied. TRAI had suggested the fee on grounds that as 3G spectrum was being auctioned, the Government could not continue to impose a spectrum usage fee as in the case of 2G mobile services.

The regulator has suggested that operators should be asked to pay 2 per cent of the highest bid amount every year as administrative charge.

For quick decision

The GSM operators have opposed the introduction of the fee. According to the existing rules, DoT has to send the proposal back to TRAI if it does not agree. However, it may go through the Cabinet to get a quick decision since DoT is planning to hold the auction by January 16, 2009.

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