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Thursday, November 18, 2010

BSNL, MTNL have 14,000cr worth of extra spectrum

From times of india 

BSNL, MTNL have 14,000cr worth of extra spectrum

    The CAG report on the 2G spectrum scam has estimated that the exchequer lost nearly Rs 37,000 crore because additional spectrum beyond the contracted amount was allocated to existing operators without charging them anything from it. So who gained how much from this?
    While the report gave the aggregate figure and a break-up of which service provider had how much of extra spectrum, it did not give a break-up of the extent to which different operators had gained. The basis for the calculation was, however, spelt out as the recommendations of the Telecom Regulatory Authority of India (TRAI).
    In essence, what these recommendations said was that this excess spectrum should be charged at rates varying from those obtained for the 3G spectrum to
nearly two times that level depending on how much of additional spectrum an operator holds and in which frequency band.
    Calculations based on the suggested formula show that cumulatively the biggest gainer from not paying for this spectrum
has been the state-owned duo of BSNL and MTNL, with savings of nearly Rs 14,000 crore. Among the private operators, Airtel, which has saved Rs 8,520 crore, is the biggest beneficiary followed by Vodafone and BPL (see chart).
    In all there are 9 operators who are currently holding such additional spectrum beyond the upper limit prescribed under the Unified Access Service Licence (UASL) agreement. Thus while the DoT on the one hand was not processing pending applications for licence due to non-availability of spectrum, on the other hand it was allotting spectrum to existing operators beyond the contracted limit.
    Based on the CAG's estimates, about a fifth of the presumed loss to the exchequer as a result of the 2G scam was on account of this factor alone.

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