Government feels cancellation of licences could affect telecom sector
As cancellation of 2G licences, obtained by operators at highly undervalued prices of spectrum in 2008, could have a negative impact on the growth of telecom sector, the government is working on a formula aimed at compensating the exchequer that suffered a “presumptive loss” of over Rs.1.76 lakh crore (based on 3G spectrum prices) from the entire scam.
The Ministry of Communications and Information and Technology feels cancellation of licences of the erring operators could lead to litigations and spoil the economic environment in the country. The government, however, may ask these operators to pay an additional amount for spectrum to compensate for the massive loss to the public exchequer.
“We are closely reviewing the entire issue … cancellation of licences cannot be a viable step forward as it would not only affect the high revenue-generating telecom industry, but also hit foreign direct investment, as leading global players have invested hugely in the Indian telecom sector. Similarly, cancellation of licences would also hit the subscribers as well as the operators who had set up their infrastructure … we cannot stop telecom services,” a senior government official said.
“We will have to find some middle path … we are working on it. If the public exchequer has lost due to under-pricing of spectrum, there should be ways to compensate for it. We have already seen operators paying huge amount to acquire 3G spectrum earlier this year … there were some private operators who were ready to shell out more money for spectrum in 2007,” the official said.
The companies which benefited in 2008 paid just Rs.1,658 crore (based on the 2001 spectrum prices) for pan-India licence.
Similarly, on the TRAI's latest recommendations seeking cancellation of 69 licences of operators who have failed to meet the network roll-out obligations, it is learnt that the new Communications Minister Kapil Sibal has asked the DoT to prepare a detailed note .
Comments:
The inordinate delay in taking action against the irregularity has resulted in irreversible damage to our economy. It will be asking for a lot of litigation, if the allotted and widths are withdrawn. This is in effect the cost of alliance with dishonest parties. We have a fait accompli situation.
Will the IT department give me a middle way if I fail to file my taxes? Or the Electricity board give me a middle path if I fail to my bill? When common man like me cant get middle way for hundreds and thousands of rupees, why should the big wigs get middle path for crores and crores? Is this real concern on the FDI or the real concern that canceling license will start to bring out the list of names involved in the scam?
This is the height of shamelessness and corruption. It is like robbing Paul to pay Peter.
Nail the corrupt politicians. Manmohan Singh is not more important than the country. Raja should be jailed. Let the Congress govt fall. Anil Ambani, and Videocon Dhoot should be jailed. They are a set of corrupt industrialists, who will fall to any levels to meet their ends. The common man is dismayed by all this.
Politicians have never paid the price for the loot. They may loose next election but will come back through a different alliance or through back door. They may even promote their heirs in a different party. The officials at top level are a law unto themselves. We need to have a Mahathma Gandhi to spearhead a non-cooperation movement or a JP Narayan to whip up the next generation. The rulers at every state-politicians and officials- think they have a godsent right to rob the public.
This is scare tactic. Foreigners will be more than happy to deal with India if corruption is acted against and transparancy is restored. Looks like they want to protect the loot & coverup.
Let industrialists, corporates,unethical politicians, aides and journalists know that India, the republic is NOT for sale. India is ours! Peoples freedom and trust cannot be taken for grant by any agencies.