It deferred a decision on imposing a one-time fee on spectrum beyond 2.5 MHz with CDMA players, because its pricing could not be determined by the coming 2G auction.
That is because there are no bidders for this band in the auction, with both Videocon and Tata Teleservices having pulled out.
According to a DoT (department of telecom) calculation, operators, including Bharti Airtel, Vodafone, Aircel, Idea Cellular, and the state-owned BSNL and MTNL, would have to fork out Rs 24,989 crore (Rs 249.89 billion) as a result of the decision.
However, nearly half the burden (Rs 11,573 crore or Rs 115.73 billion) will fall on the financially strapped government telcos.
Based on Cellular Operators Association of India (COAI) estimates, GSM operators would have to fork out much less i.e. around Rs 19,400 crore or Rs 194 billion, including Rs 7,960 crore (Rs 79.6 billion) by the two PSUs.
The PSUs have already asked for a package from the government to make the payment.
The demand has been endorsed by the empowered group of ministers on telecom and a Cabinet note on this is being prepared.
GSM operators have to pay the auction-determined price for the spectrum they hold beyond 4.4 MHz, prospectively from January 1. However, telcos that have spectrum beyond 6.2 MHz have to pay retrospectively from July 2008, when the Cabinet took the decision.
But the payment will be based on the 2001 price of Rs 1,658 crore or Rs 16.58 billion, indexed at the State Bank of India prime lending rate. From January 1, they have to pay the auction price.
Speaking at a press conference after the Cabinet meeting, Finance Minister P Chidambaram clarified, "The DoT will work out the pricing for the one-time
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