GSM body asks DoT to implement uniform spectrum usage fee

GSM industry body Cellular Operators Association of India (COAI) has written a letter to the Department of Telecommunications requesting it to implement Trai 's recommendation of levying a uniform spectrum usage rate of 3 per cent of adjusted gross revenue.

Implementation of the recommendation would lower spectrum usage charge (SUC) of telecom players while increasing the rate for those have broadband wireless access (BWA) spectrum including Reliance Jio Infocomm (RJIL).

The spectrum usage charge, which is levied annually by government as percentage of revenue earned by telecom companies from telecom services, varies between 3 to 8 per cent in case of mobile operators. It is currently 1 per cent for firms such as RJIL.

The COAI said the BWA spectrum was acquired under a ISP licence and the scope of licence was limited to data services.

"By allowing such licensees to migrate to Unified Licence (new licensing regime)...the terms of NIA have already been changed for the BWA players. These players cannot be heard to say that the terms of NIA are sacrosanct and cannot be changed," COAI Director General Rajan S Mathews said.

The COAI represents GSM telecom operators including Bharti, Vodafone, Idea and Uninor.

RJIL in September had protested against Trai's recommendation saying that 1 per cent of SUC charge was one of conditions in the notice inviting application (NIA) on the basis of which the company purchased spectrum and it is legally binding.

In October, RJIL procured UL with additional payment of of one-time entry fee of about Rs 1,673 crore. The new licence allows RJIL to provide voice telephony as well.

No immediate comments were received from RJIL on the matter.

Mathews said the players contesting against Trai's recommendation "cannot be allowed to selectively pick and and choose the terms of NIA that can be changed."

The DoT has reportedly calculated that uniform SUC as suggested by Trai may lead to loss of Rs 2,657 crore over a period of 10 years.

Mathews, however, said that instead government will gain by lowering SUC as it gets factored in to the business case of operators leading to higher upfront bids.

"As a corollary, continuing with the high escalating charges will not only stifle the participation , but will lead to lower bids," he said.

Mathews added that continuing with high SUC will discourage purchase of spectrum, impose differential and discriminatory spectrum costs on different operators, hinder proposed spectrum reforms and discourage mergers and acquisitions activity.

Jalan panel on new bank licences holds second meeti

The Bimal Jalan panel that is entrusted with the task of scrutinising applications for new bank licences held its second meeting on Monday.

"There was a meeting of the committee today," Jalan, who headed RBI during 1997-2003, said.

He, however, refused to divulge any details of the meeting.

The committee held its first meeting on November 1.

The other members of the high-level advisory committee (HLAC) are former RBI Deputy Governor Usha Thorat, former Securities and Exchange Board of India Chairman C B Bhave, and Nachiket M Mor, Director of the Central Board of Directors of RBI.

Initially, 26 entities evinced interest in entering the banking arena. Tata Sons, the holding company of Tata group, withdrew its application last month leaving 25 players in the fray.

Public sector units India Post and IFCI, private sector Anil Ambani Group and Aditya Birla group submitted applications on July 1.

The RBI issued guidelines for licensing of new banks on February 22 and issued clarifications in the first week of June.

In the past 20 years, the RBI licensed only 12 banks in the private sector in two phases. Ten banks were licensed on the basis of guidelines issued in January 1993.

The guidelines were revised in January 2001 based on the experience gained from the functioning of these banks and fresh applications were invited. Kotak Mahindra Bank and Yes Bank were the last two entities to get banking licences from RBI in 2003-04.

India has 27 public sector banks, 22 private sector banks and 56 regional rural banks.

In the 2001 round of guidelines for new licences, the external committee members were C G Somiah, former government auditor CAG, I G Patel, former RBI Governor, and Dipankar Basu, former head of State Bank of India.

2G case: Loop Telecom moves court for settlement of case

Loop Telecom, facing trial in a case arising out of the probe into 2G spectrum scam, on Monday moved a Delhi court seeking appropriate directions for referring the matter to Lok Adalat for "settlement" saying the offences alleged against them are compoundable.

Special Central Bureau of investigation (CBI) Judge O P Saini issued notices to CBI and the Department of Telecommunication (DoT) seeking their replies to Loop Telecom Limited (LTL's) plea and fixed the matter for hearing on February 20 next year.

The plea was filed three days after LTL, chargesheeted by CBI along with the promoters of Essar Group and Loop Telecom, had approached the court for an appropriate direction to the Centre for compounding the case.

During the proceedings on Monday, LTL withdrew their earlier plea with liberty to move a fresh application and requested the court to "pass an order referring the present matter to the Lok Adalat for settlement."

Lok Adalat is an alternate dispute resolution mechanism by which the parties involved in civil and compoundable criminal cases try to arrive at a compromise to settle their case. If the concerned parties do not arrive at a compromise, the matter is remanded back to the court for disposal.

In its fresh plea, LTL said "it is fair and reasonable on its part to file the present application seeking reference of the present matter to Lok Adalat even at the present stage of the trial. This is an appropriate case which requires to be referred to Lok Adalat for settlement."

It also said the plea seeking to refer the matter to Lok Adalat for settlement is without any prejudice and by filing the application, the firm is not admitting any of the allegations levelled by CBI in its charge sheet.

"The applicant (LTL) submits that the present application seeking reference of the present matter to Lok Adalat for settlement is without prejudice to the applicant's contention that there is no case made out against the applicant. By making this application, the applicant is not admitting any of the allegations made in the charge sheet," it said.

On December 12, LTL had filed a petition for an appropriate direction to the Centre for compounding the case contending they are "ready and willing to any fair and reasonable terms for compounding the said offence."

It had said they are facing trial for the offence of conspiracy to cheat and the offences are "compoundable".

As per the provisions of the Code of Criminal Procedure (CrPC), offence under section 420 (cheating) of the IPC is compoundable if both the complainant and the accused arrive at a mutual consent.

LTL had said they were granted 21 UAS licences by DoT in 2008 but they have not made any monetary gains and had, in fact, incurred a huge loss and the Supreme Court has already cancelled the licences.

Essar Group promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters Kiran Khaitan, her husband I P Khaitan and Essar Group Director (Strategy and Planning) Vikas Saraf are facing trial in the case along with three firms -- LTL, Loop Mobile India Ltd and Essar Tele Holding Ltd. All of them have denied the charges levelled by CBI.

CBI had filed the charge sheet against them alleging they had cheated DoT by using Loop Telecom as a "front" to secure 2G licenses in 2008.

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Indian rupee down 4 paise against US dollar, at 62.16

 
The Indian rupee fell marginally by four paise to 62.16 against the US dollar in early trade, extending losses for the fourth straight session at the Interbank Foreign Exchange market.

The rupee had lost 29 paise to close at 62.12 against the dollar on Friday.

Monday's drop was in line with weak local equities amid increased demand for the American currency from importers.

Forex dealers said besides a lower opening in the domestic equity market on fears of a rate hike by the Reserve Bank of India, higher demand for the American currency from importers put pressure on the rupee but dollar's weakness against other currencies overseas, capped the fall.

Meanwhile, the BSE Sensex fell 36.56 points, or 0.18 per cent, to 20,679.02, at the same time on Monday.

Jalan-led panel on new bank licences to meet today

 
The panel that is entrusted with the task of scrutinising applications for new bank licences will hold its meeting on Monday.

"We are having meeting on December 16 in Delhi," former RBI Governor Bimal Jalan , who is heading the panel, said.
The committee held its first meeting on November 1.

The other members of the high-level advisory committee (HLAC) are former RBI Deputy Governor Usha Thorat, former Securities and Exchange Board of India Chairman C B Bhave, and Nachiket M Mor, Director of the Central Board of Directors of RBI.

Initially, 26 entities evinced interest in entering the banking arena . Tata Sons, the holding company of Tata Group, withdrew its application last month leaving 25 players in the fray.

Public sector units India Post and IFCI, private sector Anil Ambani Group and Aditya Birla group submitted applications on July 1.

The RBI issued guidelines for licensing of new banks on February 22 and issued clarifications in the first week of June.

In the past 20 years, the RBI licensed only 12 banks in the private sector in two phases. Ten banks were licensed on the basis of guidelines issued in January 1993.

The guidelines were revised in January 2001 based on the experience gained from the functioning of these banks and fresh applications were invited. Kotak Mahindra Bank and Yes Bank were the last two entities to get banking licences from RBI in 2003-04.

India has 27 public sector banks, 22 private sector banks and 56 regional rural banks.

In the 2001 round of guidelines for new licences, the external committee members were C G Somiah, former government auditor CAG, I G Patel, former RBI Governor, and Dipankar Basu, former head of State Bank of India.