What India earns from telecom despite defaults

The government on Wednesday said it has received over Rs 2.15 lakh crore (Rs 2.15 trillion) so far from telecom operators as spectrum fee and licence fee.

Up to June 2011, the government has received Rs 1,27,775.47 crore (Rs 1,277.754 billion) as spectrum charges and Rs 88,095.38 crore (Rs 880.953 billion)

as licence fee from operators, total amounting to Rs 2,15,870.85 crore (Rs 2,158.708 billion), Minister of State for Communications and IT Milind Deora said in a written reply to the Lok Sabha.

"These figures include entry fee in respect of 2G, 3G and BWA (broadband wireless access)," he added.

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However, leading telecom firms, including Reliance Communications, Bharti, Idea and state-run MTNL, owe over Rs 127 crore (Rs 1.27 billion) to the government, arising out of default in payment of annual licence fee, Parliament was informed on Wednesday.

Deora said that private firms have defaulted to the tune of Rs 99.35 crore (Rs 993.5 million), while MTNL has to pay Rs 27.81 crore (Rs 278.1 million) to the government.

"Notices of demands and reminders are issued by the Department of Telecom.

"Various legal cases are being contested by the Department at different fora," he said.

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The minister pointed out that Mahanagar Telephone Nigam Limited has outstanding due of Rs 27.81 crore (Rs 278.1 million), Aircel Rs 18.91 crore (Rs 189.1 million), RCom with its subsidiary Reliance Telecom account for Rs 49.04 crore (Rs 490.4 million), Idea Cellular Rs 13.74 crore (Rs 137.1 million) and Bharti Airtel Rs 17.66 crore (Rs 176.6 million).

Deora said that these companies during year 2010-11 have paid Rs 4,037.33 crore (Rs 40.373 billion) to DoT, Rs 3,965.37 crore (Rs 39.653 billion) in 2009-10 and Rs 4,007.35 crore (Rs 40.073 billion) in 2008-09.

In reply to another question, he mentioned list of 46 telecom companies are yet to pay over Rs 1,366.32 crore (Rs 13.663 billion) interconnect usage charge to state run telecom company BSNL.

While 10 companies have to pay over Rs 13.45 crore (Rs 134.5 million) to MTNL. IUC charges are paid by one company to other for using network of other companies to complete calls of its subscribers.

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Tata Group companies, including Tata Teleservices and Tata Communications, have maximum outstanding IUC dues amounting to over Rs 290.18 crore (Rs 2.901 billion), followed by RCom with Rs 252.44 crore (Rs 2.524 billion) and Bharti Airtel for Rs 250.61 crore (Rs 2.506 billion) to both the state run telecom companies.

Deora said that telecom regulator Trai the Telecom Regulatory Authority of India -- had in May 2010 recommended that in so far as future licensing is concerned, spectrum should be delinked from Unified Access Services licence.

The regulator had also recommended that all future licences should be unified licences and that spectrum be delinked from the licence. These recommendations of Trai are under considerations of the government, he said.

Recently, several mobile operators have increased tariffs applicable for certain plans and packs offered be them, Deora informed.

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Mobile operators have been revising the tariff both upward and downward, in accordance with the market dynamics.

However, a whole, the tariff for telecom services has been showing consistently downward trend for several years.

Trai has issued regulatory prescriptions as per which the existing subscribers are protected from any hike in tariff for a certain specific period.

Operators have assured Trai that tariff for the existing subscribers will be protected against hike in accordance with the regulatory mandates, he informed.