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DoT to act tough with spectrum fee defaulters

G. Rambabu

NEW DELHI, June 21

WITH many of the existing cellular service providers evincing interest in the fourth cellular licences, bidding for which is open, the Department of Telecommunications (DoT) has decided to act tough on all the defaulters of spectrum fees.

According to sources, many of the major cellular groups which have been raking in profits from their existing operations still owe the DoT a total of Rs 138 crore for spectrum usage. This is just the principal amounts, added with interest they would tota l much more, they said.

The list is headed by the Usha group (Koshika) which owes as much as Rs 41.27 crore, followed by Escotel Rs 31.88 crore, Birla-Tata-AT&T Rs 16.93 crore and the Essar Group (Aircel Digilink) with dues of Rs 15.05 crore.

Bharti owes DoT a total of Rs 12.83 crore for spectrum usage, while the BPL Group had arrears of Rs 10.42 crore and Modi group (Spice) Rs 7.02 crore. The rest of the defaulters include Hexacom India Ltd. (Rs 2.81 crore) and Hutchison Rs 0.28 crore.

While the dues of Usha group (Koshika) are for its cellular operations in Uttar Pradesh (East) and Orissa circles as also for its suspended services in Uttar Pradesh (West) and Bihar circles, Escotel's dues are for the cellular services in Kerala, Haryan a and Uttar Pradesh (West) circles. BTAT&T combine owes the DoT spectrum charges for its operations in the circles of Maharashtra, Gujarat, Andhra Pradesh and Madhya Pradesh.

Essar (Aircell Digilink) spectrum dues are for its cellular operations in Haryana, Uttar Pradesh (East) and Rajasthan circles. While Bharti owes the DoT in the circles of Himachal Pradesh, Punjab, Andhra Pradesh and Karnataka circles.

The sources noted that BPL group dues are for its services in Kerala, Maharashtra and Tamil Nadu. Modi group for its Punjab and Karnataka operations. Shyam group (Hexacom) for its Rajasthan operations and Hutchison for Gujarat circle.

The DoT has decided that unless the dues are cleared, the fourth cellular licences would not be granted to the groups, the sources said.

As per the schedule, the sale of tender document closes on June 22, and the last date for submission of bids for pre-qualification, first stage financial bids and earnest money bank guarantee has been fixed on June 29.

The pre-qualified bidders are to be announced by July 9 and the three stage informed ascending bidding process will put into motion. The final list of successful bidders is to be announced by July 19.