CoS meets to discuss the rescue package for telecommunications companies; DoT working on demand notices
New Delhi, November 5 () The Department of Telecommunications (DoT) began work on the issuance of demand notices in search of Rs 1.4 lakh crore in previous installments of mobile phone companies, even when a committee of high-level secretaries He met on Tuesday to explore a financial report rescue package for the telecommunications sector.
The sources said the DoT is resolving the exact responsibility that Bharti Airtel, Vodafone Idea Ltd and other telecommunications operators owe the government after the ruling of the Supreme Court on October 24 on how legal fees should be calculated, such as the license fee and the spectrum usage fee. .
The demand notices will be issued within the next two weeks after an evaluation is conducted in the light of the court order, they said telecommunications operators are expected to pay them within the 90-day period established by the Supreme Court.
At the same time, a Committee of Secretaries, headed by Cabinet Secretary Rajiv Gauba, has begun work on a financial rescue package sought by indebted telecommunications operators.
The panel, which includes secretaries from the department of telecommunications, law, corporate affairs, income and economic affairs as well as the CEO of Niti Aayog, had its second meeting on Tuesday, but no decision has been made, they said.
You have been asked to analyze the demands of telecommunications service providers (TSP) to defer payments you had promised for the spectrum gained through an auction, and consider reducing the charges for wave usage. Aerial
They have also been asked to consider reducing the obligation of the TSP to provide 5 percent of their annual income to the Universal Service Obligation Fund (USOF), they said.
In parallel, the sector regulator, Trai, is expected to examine the requirement of a minimum charge for voice and data services, which according to former telecom operators will ensure the long-term viability and robust financial health of the sector.
The panel was created one day after an unsigned document seeking an interest exemption and fines for the unpaid amount, as well as the amazing payment of the main license fee for 10 years was submitted to DoT on October 28, the day that Bharti president Airtel Sunil Bharti Mittal and his brother Rajan Mittal had met with telecom minister Ravi Shankar Prasad and with telecom secretary Anshu Prakash.
Citing the recent ruling of the Supreme Court that confirmed the position of the government on the inclusion of the income of non-telecommunications companies in the calculation of the annual gross income of telecommunications companies, a part of which is paid as license and spectrum rate to the treasury, the note sought two of 4 years for spectrum payments beyond April 2020 until March 2022, reduction of the license rate from 8% to 3% and reduction of USOF to 1%.
After the court order, Airtel, Vodafone-Idea and other telecommunications operators may have to pay the government a whopping Rs 1.42 million rupees in three months.
According to preliminary DoT calculations, Bharti Airtel faces a liability of around Rs 42,000 crore after including license fees and charges for spectrum use, while Vodafone-Idea may have to pay around Rs 40,000 million. rupees Jio may have to pay around Rs 14 crore.
The remaining responsibility is with state-owned BSNL/MTNL and some of the closed/bankrupt companies. Although the matter had been in court for more than a decade, the companies had made no provision for potential liability in their account books and in the absence of which they are now knocking on government doors for help. MBI ANZ MKJ