Telecom companies using 2G spectrum after Feb 2 verdict may have to pay: SC

NEW DELHI, NOVEMBER 28, 2012







Telecom operators who were allowed to operate to ensure that consumers did not suffer because of the delay in auction of 2G spectrum that was freed following cancellation of 122 licences by the Supreme Court (SC) on February 2 may have to pay higher spectrum usage charges (SUC).



A Bench comprising Justices G. S. Singhvi and K. S. Radhakrishnan observed on Tuesday that the court will consider directing such operators to pay for using the radio waves on the basis of current price. The observation could give an extra lease of life to the operators.



The observation came after the apex court was informed that the government had enhanced the rate of SUC for operators getting spectrum at the recently conducted 2G auction .



The SC, while quashing the licences, allotted under tainted former telecom minister A. Raja, had given a grace period of four months to beneficiary telecom companies who were supposed to seize operations on June 2 as per the judgment.



Expressing inability to conduct auction by the cut-off date, the Centre had sought extension of time for reallocation of spectrum as it did not want phones to go dead on June 2.



Justice Singhvi observed that the court will consider asking them to pay SUC at the higher rate for the period beyond June 2.



The court also asked senior advocate P. P. Rao, who was appearing for the Centre, as to under what circumstances the entire 2G spectrum quashed by it was not put for auction. The court sought information after the Centre submitted that it had not auctioned all spectrum in the band of 1,800 MHz in furtherance of its decision to refarm 900 MHz band.



\"You should have informed us.



If there is a policy of refarming and the court permits it, there is no problem,\" the court observed.



The government had informed the Bench that it had gone by the recommendations of the Telecom Regulatory Authority of India, which had been directed by the court to give recommendations on modalities for auction keeping in view the 2011 policy.



The government had admitted in its affidavit that it withheld some spectrum but justified it in public interest.



Meanwhile, the apex Court asked senior CBI, Enforcement Directorate and the Income Tax department officials to meet every fortnight to discuss the progress made in the 2G spectrum scam probe.



The order came in the wake of a suggestion by the Central Vigilance Commission (CVC).



The court had on the last day of the hearing asked the agencies to consider the suggestion made by CVC to ensure co- ordination among investigators probing the matter.
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