Date:14/12/2007 URL: http://www.thehindu.com/2007/12/14/stories/2007121461031400.htm

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Spectrum: Finance Ministry wants issue of licences stayed

R.K. Radhakrishnan

Letter written to Telecom department

D. Subba Rao

CHENNAI: The Union Finance Ministry has written to the Department of Telecommunications asking it to “stay” implementation of the grant of crossover licences for CDMA (Code Division Multiple Access) operators to commence GSM (Global System for Mobile) operations.

Spectrum policy

The November 22 letter written by D. Subbarao, Finance Secretary, Department of Economic Affairs, Ministry of Finance, to D.S. Mathur, Secretary, Department of Telecommunications, Ministry of Communications and Information Technology, states that in the presentation on the spectrum policy, Mr. Mathur had mentioned that three CDMA operators were given crossover licence for GSM operations; that the fee for this licence was determined as Rs.1,600 crore and that one licensee had already paid the fee.

“The purpose of this letter is to confirm if proper procedure has been followed with regard to financial diligence. In particular, it is not clear how the rate of Rs.1,600 crore, determined as far back as in 2001, has been applied for a licence given in 2007 without any indexation, let alone current valuation.

“Moreover, in view of the financial implications, the Ministry of Finance should have been consulted in the matter before you had finalised the decision.”

Details of permission

“I request you to kindly review the matter and revert to us as early as possible with responses to the above issues. Meanwhile, all further action to implement the above licences may please be stayed,” the letter says and also sought details of permission granted and the dates on which such permissions were granted to CDMA operators.