Government to review spectrum user charges, Vodafone Idea shares jump 3% and Airtel shares by 2%
Government Can Waive Spectrum User Charges Of Telecom Companies, Vodafone Idea Shares Jumped 3% And Airtech Shares Jumped 2%
TPN24 Desk 
The central government is preparing to give relief to telecom companies in the outstanding case of spectrum user charges of about Rs 40,000 crore. The government has filed an affidavit in the Supreme Court saying that it is reviewing the process of levying spectrum user charges (SUC) from telecom companies. The Department of Telecommunications (DoT) had sought a time of at least three weeks from the court for this, which has been approved by the court.
The next hearing of the telecom sector case going through a financial crisis will be on November 17. In an affidavit filed in the Supreme Court, the Department of Telecom has said that it is reconsidering its decision to pursue the case against the telecom companies. In an affidavit filed in the Supreme Court, the government said that the telecom sector has been going through a financial crisis for some time due to various circumstances. Despite some measures taken by the government in the public interest, most of the TSPs providing mobile phones and broadband are running at a loss.
The government said that the Indian Banks' Association has also informed the central government in writing that adverse growth in the telecom sector could lead to failures, eroding competition, monopolies, unstable operations, and serious damage to the banking system, whose sector is There is great risk in.
OTSC dues of Rs 8,414 crore on Airtel owed
Rs 40,000 crore to the telecom companies for spectrum user charges. The country's largest telecom company Bharti Airtel owes Rs 8,414 crore while Vodafone Idea owes Rs 4,389 crore One Time Spectrum Charge (OTSC). Other spectrum cases are under review.
What is the whole matter?
Supreme Court had canceled 122 telecom permits in 2012 in the case of a 2G scam. The court said that this public asset should be allotted by auction. The then cabinet decided that a one-time spectrum usage charge (OTSC) of Rs 1,658 crore would be charged from the telecom company for the allotment of spectrum for all India licenses. Earlier this charge was linked to the number of subscribers.
In the UPA-2 government, this policy was changed and it was said that all spectrum above 4.4 Mhz will be charged user charge at the market rate. There was a dispute over last year's dues and telecom companies opposed it. After this, the matter reached the Telecom Disputes Appellate Tribunal (TDSAT) which in July 2019 ordered that dues of previous years from companies cannot be taken from the new rule and it will be applicable from a later date. This order was challenged by the Department of Telecom in the Supreme Court. Now the government wants to settle the issue out-of-court by abolishing the existing spectrum user charge system.
