Telcos may have to pay for merged licences

The department of telecommunications is likely to ask operators to pay spectrum charges for their merged licences for Chennai and Tamil Nadu circles, if they have got any extension. Most mergers were approved in 2007.

This would increase the burden of Bharti Airtel, the country's largest mobile carrier by subscribers, as the company had got extension for Chennai spectrum from 2014 to 2021. An extension, according to the norms then, was valid as long as the constituent licence with the later expiry date.

The issue came up after Aircel applied for merger of its licences for the two circles in October 2010, five years after the guidelines were issued. Aircel would get extension for the merged licence from 2014 to 2018. Under the current policy, spectrum is delinked from licence and is to be acquired at the market price. Hence, for the extended period (2014 to 2018) for the erstwhile Chennai circle, Aircel should pay for the spectrum, according to a recent discussion.

Source: http://cablequest.org/news/telecom-news/item/3133-telcos-may-have-to-pay-for-merged-licences.htmlSource: http://cablequest.org/news/telecom-news/item/3133-telcos-may-have-to-pay-for-merged-licences.html